While dissolving a marriage is always a difficult and emotional process, it can be especially complicated when one or both spouses own a business. When a married couple in Virginia decides to divorce, they must divide their marital property according to state law.
If you are going through a divorce, you may wonder what will happen to your business. Will your spouse get half of it? The answer to this question is complicated and depends on various factors.
Is your business marital property?
Marital property is any property acquired during the marriage, regardless of who purchased it or whose name is on the title. This includes physical assets such as houses and cars and financial assets such as investment accounts and retirement savings. It might also include your business.
In Virginia, marital property, including applicable businesses, is divided equitably, which means that the company could be divided between the spouses in a fair but not necessarily equal way.
The court will consider several factors when determining how to divide the business, such as the length of the marriage, contributions of each spouse to the business, and future earning potential of each spouse. However, the court will not automatically award one spouse the entire company.
Alternatively, you may be able to keep all of your company if you can prove that it is separate property. For example, if you can show that you started the company before the marriage or that it is inherited property. Considering the complexities of Virginia’s divorce laws, it’s essential to get professional help to protect your interests throughout the divorce proceedings.