Top Divorce Attorney, Francis King, Unpacks Challenges In High-Asset Divorces With Shared Business Interests – Nashville, TN

Top family law attorney Francis King, founder of the Law Offices of Francis King in Nashville, TN emphasizes the complexity of disentangling joint business interests, especially when they serve as vital income sources for both spouses. For more information please visit https://franciskinglaw.com

Nashville, TN, United States – January 30, 2024 —

Untangling shared assets in a high-net-worth divorce in Tennessee can entail a web of complications, not the least of which is trying to iron out the intricacies of a shared business, according to Nashville family law attorney, Francis King.

For more information please visit https://franciskinglaw.com

A shared business is often a major obstacle in a divorce settlement, mainly if the couple has worked hard to build it up and depends on it as a source of personal income. 

Substantial personal assets and liabilities, such as mortgages on homes, may be tied to the fortunes of a marital business entity, and the potential economic impact of the divorce on the business and what will happen to it can weigh heavily on the course and outcome of divorce proceedings.

Says King, ”In Tennessee, divorce courts are called upon to make an equitable division of marital assets, including any business that was formed during the marriage, irrespective of who is named as the legal owner for purposes of dealing with third parties. In other words, even though the husband might be the only legally recognized shareholder of a corporation, if he formed it during the marriage, it is marital property and the wife has an interest in it that must be accounted for as part of the equitable division of the martial estate.”

He adds that if the spouses are in a sufficiently non-contentious divorce, the path may well be open for them to retain co-ownership of the business. If not, unless the business is to be sold to a third party, it will be awarded to one party or the other, and the party who does not receive it will be entitled to be paid the value of his/her interest by the recipient party.

In order for a court to decide (or for spouses to agree upon) what will happen to marital business, it is necessary to determine the value of the business and, if there are owners other than one or both spouses, the value of an individual owner’s interest. This usually requires the services of a business valuation expert in addition to those of an experienced family law attorney conversant with the factors that courts apply to these situations.

King says that the various factors involved include such matters as the nature of the business, the extent to which the business has a profitable history, whether there is a market of potential buyers for the business, whether the future of the business is or is not dependent on the continued involvement of one of the spouses, what the “book value” of the business might be in comparison to its “market value” and whether there are shareholders agreements or other documents that prohibit or restrict the transfer of ownership interests.

King concludes, “An attorney’s mission is to empower the client with the knowledge and strategies to navigate the complexities of high-asset divorces involving shared business interests. When the stakes are high, a valuation expert’s advice is also key to achieving a successful outcome. But, such a valuation, standing alone, is not a substitute for a divorce lawyer who has experience and knowledge regarding how courts review business valuations and determine what weight to accord to them.”

Source: http://RecommendedExperts.biz

Contact Info:
Name: Francis King
Email: Send Email
Organization: Law Offices of Francis King
Address: 4235 Hillsboro Pike #300 Nashville, TN 37215
Phone: 615-385-7654
Website: https://franciskinglaw.com

Release ID: 89119805

Should there be any problems, inaccuracies, or doubts arising from the content provided in this press release that require attention or if a press release needs to be taken down, we urge you to notify us immediately by contacting error@releasecontact.com. Our efficient team will promptly address your concerns within 8 hours, taking necessary steps to rectify identified issues or assist with the removal process. Providing accurate and dependable information is central to our commitment.