Attorney Nathan J. Olson recently met with Dan Doran of Quantive to discuss how divorce cases can affect entrepreneurs.
Mr. Olson offered advice to business owners and spouses of business owners who are considering separation and divorce. For the full interview click here.
What Happens After You File for Divorce?
After filing for divorce, the Court will expect both sides to set a trial date on the contested matters. Some Courts allow you to call the Clerk to set the trial dates. Other Courts have more formal scheduling procedures.
Olson explains that trial dates differ depending on which jurisdiction you are in. If both custody and property division will be contested at trial, parties can typically expect anywhere from a six month to one year waiting and preparation period between filing and trial.
Managing Your Expectations with Your Business
As an entrepreneur or the spouse of an operating business owner, it is vital to sit down with your lawyer and discuss the relevant facts and timeline of your case, and to see if there are any areas of agreement.
Unfortunately, if a couple is not able to reach a mutual financial agreement, it can often become a tennis match of discovering assets, assessing and evaluating the worth of a business, and establishing intrinsic values for both parties.
A key to managing the often tedious process of trial preparation is to have a frank conversation with your attorney to discuss realistic timelines and expectations. Such is true whether your case involves, custody, support, property division or any combination thereof.
Business Owners and Becoming “Whole”
Olson discussed how business owners typically are business rich but cash poor, which can make dividing assets a tricky legal process.
In most cases, the court will make binary decision when it comes to business assets. One example of this is a judge ordering that the business is to be sold and the sale proceeds are to be split by the parties. However, the parties may not want to sell the business, which can result in neither party liking the Court’s decision.
To avoid such binary decisions, parties may want to consider mediation whereby attorneys have more latitude to suggest creative ways to distribute the disputed asset. One method to consider in this setting is giving or receiving payment installations for your former spouse over time in order to avoid selling the business.
If you are unable to settle matters out of court, you should talk with your attorney about the best method to use to value the business, so as to best suit your argument for division.
Business Owners and Divorce in Fairfax, Virginia
To learn more about business owners and divorce in Virginia and to speak with one of our qualified attorneys contact Cooper Ginsberg Gray today at (703)934-1480.