More than half of all marriages in Pennsylvania and throughout the country end in divorce, according to statistics from the Centers for Disease Control and Prevention. A number of these marriages involve high net worth couples, who are often faced with a different set of challenges when attempting to split up marital property and assets. For instance, couples who are joint business owners may find it difficult to continue running their business after going through a divorce.
Pennsylvania’s statute follows an equitable distribution of property model when dividing property, meaning that businesses shared by divorcing couples are split in a fair fashion rather than equally in half. Couples who share a business should consider several factors before signing the final divorce settlement in order to protect their rights to the business.
One of the most crucial components of protecting a business through the divorce process is having the business properly evaluated and valued, according to Chicago Business. Whether the couple is planning on selling the business and separating the funds collected from the sale or they wish to continue operating the business as partners once the divorce is finalized, knowing how much the business is worth is key.
The judge presiding over the case may also take into consideration how much time, money and resources each spouse has invested in the company. Maybe one spouse had exclusive ownership of the company for years prior to the marriage. All of these details may come into play when the judge makes his or her final decision on who is entitled to what.