When it comes to the end of a marriage in Missouri, the assets acquired during the marriage are usually divided fairly between the spouses. However, complications arise when there is a family business involved. In certain situations, a Missouri divorce court may require the sale of a family business to ensure a fair distribution of assets.
Factors Considered
Before ordering the sale of a family business, the court takes several factors into account. These factors may include:
1. Asset Valuation
Firstly, the court will assess the value of the family business. This often requires a comprehensive business valuation conducted by an expert. The court will thoroughly examine the financial records of the business, including its income, expenses, debts, and other financial information. Given that a family business can be one of the primary marital assets, an accurate valuation is crucial.
2. Ownership and Control
Another important aspect that the court will consider is the ownership and control of the family business. If one spouse solely owns the business, the other spouse may be entitled to a fair share of its value. However, if both spouses have ownership rights and actively participate in the operation of the business, selling the business may not be the most suitable course of action.
3. Other Assets
The court will also take into account the availability of other assets for division. If there are significant assets aside from the family business, it may sway the court towards ordering the sale of the business. Conversely, if there are limited other assets available for division, the court may hesitate to enforce the sale of the family business.
4. Future Financial Stability
Lastly, the court will assess the future financial stability of both parties. If one spouse heavily relies on the income generated by the family business, selling it could have adverse effects on that spouse’s financial well-being. In such cases, the court may be less inclined to order the sale of the business.
Alternatives to Selling
In some instances, the court may consider alternatives to selling the family business. For example, one spouse could be granted full ownership of the business while the other spouse receives compensation in the form of other assets or a cash payment. Alternatively, both spouses may mutually agree to continue operating the business together despite their divorce.
Conclusion
Divorce can be a multifaceted and emotionally charged process, especially when a family business is involved. While the option for a Missouri divorce court to order the sale of a family business exists, it may not always be the most optimal solution. If you find yourself facing a divorce in Missouri and have concerns regarding the impact on your family business, it is crucial to seek guidance from an experienced divorce attorney. They can help navigate the process and safeguard your interests throughout.