With the exception of deciding on a parenting structure for families that have children, the most difficult part of any divorce proceeding is often the division of assets. This time can be painful and complicated, and even further still if you have business assets that need dividing. In the Nashville area, there are many family companies – and plenty that have remained profitable for both parties after a divorce. At Karla C. Miller and Associates, we have the skills and experience to advocate for you as your Nashville family law attorney.

One of the murkiest parts of complex asset distribution is assigning a value to your family’s small business. It is clear that dividing a business “straight down the middle” is not usually an option, because a business is more than the sum of its parts. Additionally, it is not always prudent to divide business assets if you want the company to continue to thrive. In fact, this often produces a financial hit for both divorcing parties and the business itself.

Business asset valuation and appraisal

A proper asset valuation or appraisal is the key factor in determining the equitable distribution mandated by Tennessee divorce law. Considerations in business asset appraisal during divorce proceedings are:

• Salaries of the divorcing couple
• Company expenditures
• Value of company shares, should they be sold
• Net and gross income of the company; this occurs after personal expenses and other tax deductions are taken out of the totals
• Possibility of functional business processes after the divorce. Are the divorcing couple co-owners of the business at stake? Will they be able to continue to run the business after the divorce? If not, what will the compensation be for the party that does not continue to work at the business?

Equitable division of your business and properties

While many people think that dividing up property and communal assets during divorce proceedings means splitting things down the middle, Tennessee’s mandated equitable division does not always mean 50/50. In some cases, Nashville divorce attorneys will achieve an even split, but there are many factors that can complicate these decisions, especially in the case of a family business. Some of these include:

• The length of your marriage
• The size of your marital estate (this includes businesses)
• Your earning capacity and your spouse’s earning capacity
• What contributions each spouse made over time to grow the couple’s marital property
• Each spouse’s individual and separate property, from before or during the marriage

Your Tennessee business does not have to suffer because you are getting a divorce. While this is often a complicated part of the divorce proceedings, call or contact a Nashville divorce attorney that can help navigate any disputes. We have worked with a plethora of complex asset distributions and would be happy to have a conversation with you about your business. Please call 615-391-4200 or use our contact form to reserve an in-person or video consultation with the dedicated legal team at Karla C. Miller and As