If you own a business and are considering divorce, it’s important to be proactive to ensure your business is protected throughout the process. Most business owners spend a significant amount of money, time, and sweat equity getting their business off the ground and work hard every day to ensure that business is successful. During COVID-19, business owners are facing additional challenges to keep their businesses running.

If you own a business and are considering divorce, it’s time to do your research to determine exactly what you need to know and do to protect your business moving forward. Reading this article is a great first step. Milwaukee divorce lawyer Odalo Ohiku has extensive experience helping individuals and couples protect their businesses through the divorce process. Read on for our top tips for protecting your business through a divorce.

Tip #1: Hire the right team

One of the biggest reasons to hire a divorce lawyer is to ensure you have an advocate on your side who understands the ins and outs of divorce law and the impact it has on business owners. An experienced divorce attorney like those at Ohiku Law can help you understand your rights and responsibilities as a business owner facing divorce proceedings.

The consequences of not hiring an experienced divorce lawyer can be significant and costly. Even if you are a legal expert, going through your own divorce can be mentally and emotionally taxing. You are navigating a divorce while taking care of a family and running a business. This leads to mistakes and oversights that can easily be avoided by hiring a lawyer to take care of these things for you.

Tip #2: Understand community property laws

Wisconsin is one of a handful of states that employ community property laws in regards to marriage and divorce. Community property laws dictate that any income, assets, or property earned or acquired during the course of a marriage are considered equally owned by both spouses. This includes income earned from a business and likely the business itself. Additionally, most debts incurred during a marriage are the joint responsibility of the couple – including business debts.

Tip #3: Make sure your business is accurately valued

Aside from hiring an experienced lawyer, getting a correct and fair valuation of your business is the most important step you can take as a business owner going through a divorce. You may choose to hire an experienced appraiser jointly with your spouse, or each spouse may choose to hire their own appraiser. The appraiser will take their time analyzing the business and appropriate documentation to make their final valuation, which will then be used to assess how the business will be handled during divorce proceedings. The valuation will be determined by a number of factors, including:

• Revenue, sales, and potential future revenue
• Tax returns relating to the business
• Payroll records
• Outstanding business debts and loans
• Patents
• Any property or assets owned by the business

If you and your spouse have an amicable relationship, the valuation process may be as simple as hiring a single appraiser and agreeing that the final valuation is fair and accurate. If your divorce is contentious, one spouse may try to undervalue the business or proceed without investigating at all. This can cost you a lot of money and extra time in court.

Divorce is overwhelming, particularly for a business owner. Hiring the right Milwaukee divorce lawyer, like Odalo Ohiku and his team at Ohiku law, can make the process much easier on you and your family. When a couple with shared interests in a business decide to divorce, it’s imperative to take the necessary steps to protect the business interests, assets, employees, and customers.
For questions about your specific situation or to get started on the road to securing a divorce that protects your business, call the offices of Ohiku Law today. We also provide expert estate planning, child custody, bankruptcy, and other services to protect you and your family.