Small and mid-sized businesses represent the backbone of our economy. The Small Business Administration (SBA) reports that there are more than 500,000 small businesses in Indiana alone. Building, managing, and developing a successful company is complicated. For a business owner going through a divorce, times can be especially challenging.
Can a business be divided in a divorce in Indiana? The short answer is “yes”—if a business is deemed to be marital property, then it will be subject to division in a divorce. You need to protect your company proactively. Here, our Indianapolis divorce lawyer explains the key things that business owners need to know about divorce in Indiana.
Indiana is an equitable distribution state. Under Indiana law (Indiana Code § 31-15-7-5), a divorcing couple’s marital property is subject to a “fair” division. There is a presumption in the state that there is an equal (50/50) split of marital property. However, that presumption can be rebutted with sufficient evidence. A business may be subject to property division in a divorce.
When dealing with a business in a divorce in Indiana, one of the key issues that you need to determine is whether the company is marital property or separate property. Most often, a company formed after the start of the marriage will be deemed marital property. Likewise, a business that gained significant value after the start of the marriage or that was supported with marital assets may be deemed marital property.
A divorce could have an adverse impact on a business. It is crucial that you develop a strong plan to protect your company through every stage of the divorce. Here are four key principles of business planning for a divorce:
At López Law Office, our Indianapolis divorce lawyers have the professional skills and legal expertise to help business owners navigate the divorce process. If you have any specific questions about handling business interests in a divorce, we can help. Contact us today for a confidential, no-obligation consultation. From our Indianapolis law office, our firm serves communities throughout the region, including Marion County, Johnson County, Boone County, and Shelby County.
Attorney Vanessa López Aguilera represents clients in the Indianapolis Metropolitan Area