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A Family Law Attorney Offering Hope, Strength And Guidance

Hamilton County, Indiana Business Owner and Divorce Attorney – Protecting Your Business Interests, Profits & Future

Last updated on April 14, 2025

Business owners facing divorce must know how the legal process affects the “family” company. Divorce brings complexities as well as emotional challenges alone, which are only amplified when a divorce involves an ongoing business. In Hamilton County, Indiana, a skilled attorney (who himself is a small business owner and operator) can guide you through these issues and protect, not only your personal interests, but also those very crucial business assets and profit.

At Smith Legal LLC, Scott Smith leads with compassion, experience and knowledgeable guidance during complicated and tough times. With over 20 years of experience, Scott delivers clear, honest advice and seeks peaceful solutions that strengthen you and your business long-term. Scott handles complex divorce cases as an advocate (litigator) and as a registered mediator. He focuses on your mental and spiritual well-being during the most challenging times of your life.

Is Your Business Subject To Division In A Divorce?

When divorce (the marital estate) involves a business interest (S-Corp., LLC, Corp., P.C.), you must understand how courts handle division of the marital estate (the parties’ assets and liabilities) overall. Here are the key points to understand:

  • Business ownership: If you and your spouse own the business together, the court might divide it or give one of you complete control. The decision depends on each person’s role in the company, business contributions, both financially and merit, and considers other marital assets and debts.
  • Business valuation: The business’s value shapes its division. Experts that Smith Legal LLC works closely with assess the company’s finances – assets, debts, income and market standing – to set its fair market value. Oftentimes, small business may not have a determinable fair market value.
  • Prenuptial agreements: A solid pre-nuptial agreement shields your business assets. It spells out how divorce treats the business, possibly keeping it whole and protected from any distribution or disruption to operations or profit.

Knowing these factors helps you plan for outcomes and choose your options wisely during divorce.

How Is A Business Valued In A Divorce?

Valuing a business in divorce means assessing and analyzing its financial health, assets and profitability both historically and in the present and future potential earnings and growth. This process digs deep and includes the following:

  • Financial statements: A review of balance sheets, profit-loss statements, tax returns and income statements and cash flows to see the business’s past and current financial status.
  • Market analysis: A study of the company’s industry position, including competitors and trends. Businesses have two forms of value: enterprise value and/or personal goodwill. If a business has only personal goodwill, then there is no enterprise value, i.e. fair market value, and consequently no divisible marital asset. This assessment is complex and requires discussion with Scott Smith of Smith Legal LLC and a professional, seasoned business valuation company.
  • Future earnings: An estimate of future profits based on past results and market outlook.

These steps clarify your business’s worth and role in the divorce settlement.

What Do Courts Consider When Dividing A Business?

Courts weigh several factors to divide a business fairly and reasonably in divorce. They include:

  • Each spouse’s role and contribution: Courts examine how you and your spouse contribute through management, operations or growth.
  • Overall value: Experts calculate the business’s total worth using accounting and market valuation methods.
  • Other marital assets: Courts balance the business with other shared property in the division.

While these points of consideration are not comprehensive in the considerations the court might consider (or to be addressed in negotiations or mediation) they ensure that the division is equitable. Settlement and judicial intervention have an overarching goal to keep the business operating at full capacity. Judicial preference is to not disrupt business profitability as much as possible to allow the spouse continuing in the business to thrive.

Indeed, a business is often not, and may not be reasonably, ordered by a court to “be sold.” Instead, options for offset by other assets or property equalization payments over time to the other spouse often provide conduits to lessen the burden on ongoing business operations and future success.

Can A Prenuptial Agreement Protect Your Business?

A strong prenuptial agreement protects your business by defining what counts as marital or separate property. It sets clear rules for dividing business interests and offers security if divorce occurs. With a prenup, you gain peace of mind and keep your business safe. Smith Legal LLC offers prenuptial agreements at a fair and reasonable cost.

How Can You Protect Your Business In Advance?

You shield your business with thoughtful planning and legal tools. Consider these options:

  • Prenuptial agreements: You can draft these prior to marriage to protect business assets.
  • Business structure: You can set up a corporation or LLC to limit personal risk and guard assets.
  • Estate planning: You can add clauses to your estate plan to manage business assets during divorce.

These actions prepare you for legal challenges down the road.

Schedule Your Free Consultation Today

If you own a business and are facing or need to file for divorce, I encourage you to book a free 15-minute phone consultation with me at CALL. This consultation will provide valuable insights and guidance tailored to your situation and business needs. Alternatively, you can also send me an email.