What Happens To Your Business In A Minnesota Divorce?

In this article, you will discover:

• Whether your business is considered marital property under Minnesota law.
• How the value of your business is determined for purposes of the divorce.
• Whether a prenuptial agreement can protect your business in a Minnesota divorce.

Is My Business Considered Marital Property Under Minnesota Law?

Your business may or may not be considered marital property. It depends on how the business was run and whether there is value to the business. If there is a marital value to the business, then you can and should get it appraised. In that case, you’ll want to be thinking about ways to buy your spouse out of their interest.

How Do Minnesota Divorce Courts Determine The Value Of A Private Business?

Minnesota courts don’t independently assess the value of private businesses. Rather, you or your attorney would use an appraiser to value the business and bring that information before the court. Sometimes, your attorney will communicate with the other side and agree about which appraiser to use. If there isn’t an agreement about which appraiser to use or what value the business might have, a trial may be required to resolve the issue.

Can My Spouse Claim Ownership Of My Minnesota Business If They Didn’t Work There?

It depends on the facts of the situation and the nature of the business. There is a presumption in Minnesota that when you’re married, your spouse does help you to build any business the two of you own.

Attorney Kathleen Gomez is a skilled lawyer based in Otsego, MN, who has helped countless clients just like you navigate the intricacies of divorce law. With years of experience, she is prepared to assist you by protecting business interests in a divorce so you can protect the equity you’ve worked so hard to build.

Still have questions? Ready to get started? Contact Gomez Law PLLC today to schedule an initial consultation.

Can A Prenuptial Agreement Protect My Business In A Divorce?

Theoretically, a prenuptial agreement protects your business in a divorce. However, there is a presumption that your spouse helped you to build your life and your business. In other words, if they had not been your life partner, you might not have had the opportunity to amass the fortune you have.

If there is marital equity built into the business, your spouse could still be entitled to some of the assets, even with a prenuptial agreement. That will depend more on the facts surrounding the marriage and the agreement itself.

Some relevant clauses have been deemed invalid in a prenuptial agreement. It’s essential to understand the terms of these clauses if you have a prenuptial agreement or are considering creating one. The relevance of those clauses will also depend on the duration of the marriage and whether there are children involved.

For example, suppose you’re getting divorced after a year or two of marriage, and your spouse wants half the business. They’re not going to have a strong argument, especially if you have a prenuptial agreement. However, if you’ve been married to your stay-at-home partner for 20 years and you have children together, that prenuptial agreement is going to be weighed differently. The court will look at whether it’s equitable to give your spouse a share in the business or its value.

What Should I Do If I’m Worried About Divorce Impacting Business Operations?

You and your attorney can explore alternative ways to divide your assets with the other party so that your business is not impacted. You don’t necessarily have to split or sell your business. If you’re concerned about the future of your business post-divorce, the best thing you can do is to speak with an experienced family law attorney today.

Still Have Questions? Ready To Get Started?

For more information on the disposition of your business in a Minnesota divorce, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (763) 270-1571 today.