When it comes to divorce and business ownership, things can quickly become complex. For couples in Wyoming going through a divorce, it is crucial to understand what happens to business assets in order to ensure a fair settlement. In this article, we will delve into the laws that govern the division of business assets during a divorce in Wyoming.
Community Property Vs. Equitable Distribution
Wyoming follows the principle of equitable distribution when it comes to property division during a divorce. This means that marital property will be divided in a manner that is fair and just, although not necessarily equal. It is important to note that not all property is considered marital property, and it is only the marital property that is subject to division during a divorce.
Furthermore, Wyoming is not a community property state where property is divided equally between spouses. Instead, the court takes into account several factors when dividing property, including the duration of the marriage, the age and health of each spouse, and their respective financial situations.
Is The Business Considered Marital Property?
An essential question in divorce proceedings involving a business is whether or not it is considered marital property. Generally, if the business was established during the marriage, it is considered marital property. However, if the business was started prior to the marriage, it may be regarded as separate property.
The situation becomes more intricate if the business was initiated before the marriage but marital funds were utilized to support and sustain it. In such cases, the business may still be considered marital property, and the court will need to determine the proportion that is subject to division.
Valuing The Business
Once it is established that the business is marital property, the next step is determining its value. This process can prove to be complicated, particularly for businesses with intricate finances or diverse assets. To accurately assess the value of the business, an appraiser may be engaged. This professional will take into account various factors such as revenue, assets, debts, and market conditions.
Three Options for Dividing Business Assets
After the valuation of the business is completed, there are generally three options available for dividing the business assets:
1. Buyout
One possible option is for one spouse to buy out the other spouse’s share of the business. This can be accomplished through different methods such as offering a lump sum payment, making payments over time, or providing the other spouse with a larger portion of other marital assets in exchange for their share in the business.
2. Sell the Business
Another option is to sell the business and divide the proceeds between the spouses. However, this might not always be the most favorable choice, especially if the business serves as a significant source of income for one or both spouses.
3. Co-ownership
Lastly, the spouses may decide to continue owning the business together. Although this can work in certain cases, it can be challenging to effectively manage the business together following a divorce.
Conclusion
Divorce and business ownership can be intricate matters in Wyoming. Understanding the laws that govern property division and the treatment of business assets is crucial for couples going through a divorce. If you find yourself facing a divorce in Wyoming and have concerns about how your business assets will be handled, it is essential to seek the guidance of a qualified attorney. With the right legal advice, you can ensure that your business and other assets are divided in a manner that is fair and just.