Unfortunately, the harsh reality is that around 50% of US marriages end in divorce. A divorce brings a lot of heartbreak and sorrow, not just to the couple involved but also to their close friends and family. As if the emotional side of things does not hit hard enough, property and asset division matters complicate it further.
Property division laws vary from state to state, so where the business headquarters is located determines the applicable asset division laws. For example, you may need to understand Tennessee’s laws and hire a divorce lawyer in Knoxville, TN, if your property is located in this city.
Why Rise In Business Separation Cases in Knoxville, TN?
Knoxville, TN’s business-friendly policies have led to many industries setting up shop there, with more doing so every year.
The types of businesses in the city vary, from simple bakeries to big professional service companies. IT, construction, manufacturing, health services, and other trade jobs cover the rest of the spectrum. The city is, therefore, not alien to such predicaments. Divorcing couples owning any of those will need to consult a divorce lawyer Knoxville TN, for help with their business asset division proceedings.
Going Post-Marriage Dutch with Business Assets
Any business will have a ton of assets that require careful examination and validation for the rightful division. Sparring owner-couples may not be in the best of mindset to go over such intricate matters by themselves. A divorce lawyer in Knoxville, TN, on the other hand, will have the experience to ensure an equitable and just division of business assets between the parties involved.
Basic Laws Governing Property Division
Tennessee is an equitable distribution state, meaning the property is valued and distributed according to its monetary value. So Knoxville does not necessarily divide the property equally. The courts in Knoxville also value each spouse’s property separately alongside shared marital assets. The spouse with the lower position monetarily gets supported by the other.
The law considers property and assets gained during the marriage as marital assets. The rest will fall under the non-marital category. A divorce lawyer is needed to sift through the complications involved, especially if the business began before marriage. Know about the simple steps to create the best quality Business Cards.
Factors Influencing the Division
According to Tennessee law, the numerous factors based on which the assets get divided are:
- Marriage Length
- Financial ability and wish of every spouse, alongside earning capacity, age, employability, physical and psychological state.
- Quantifiable/intangible efforts of a spouse towards the other’s education and increased earning capacity.
- Value of every party’s separate and marital properties
- The economic situation prevalent while dividing
- Applicable social security benefits.
- Tax consequences, with associated costs of sale of assets and other related expenses.
Investment Portfolio Division
All business owners have investments, either directly or through the business. Knoxville allows for the division of these as well during the process by considering Retirement plans, 401k, IRA’s, pensions, etc., as marital assets.
Shares and dividends get separated according to the amount each person has invested in them individually. In the case of combined investment, the split tends to happen 50:50, or the spouse with the lesser monetary value gets a proportionately larger share.
Divorces are the end of a journey supposed to have happened together. With the right divorce lawyer in Knoxville, TN, they could become the start of a fresh one towards professional and personal success.