Dear Carolyn,
I own a small business, and I think my wife is planning on leaving me. All the signs are there. She stays out late, bought a new wardrobe and goes to the gym. So she leaves. How will my business be divided? I started the company during my marriage. I am worried I will owe her too much money.
Carolyn Answers,
You are correct that small businesses acquired during the marriage are marital property. As such, the business is subject to valuation and distribution in the equitable distribution. Businesses are initially valued at the date of separation. The business valuation needs to be performed by a competent, credentialed business appraiser. Two of the certifying bodies are the National Association of Certified Valuators and Analysts (NACVA) and the Association of International Certified Professional Accountants (AICPA). Both organizations have testing processes for designations, which for NACVA is the CVA and for the AICPA is ABV. Both organizations have high ethical standards.
The three approaches used by business valuator are the asset, income, and market approaches. The result may be a calculation of value or an opinion of value. One needs an opinion of value for trial, but a calculation may be helpful in a mediation and is less expensive.
For your consideration, you might find a business appraiser and find out what your business is worth for purposes of equitable distribution. You will then be prepared and less worried. Write me again if you need a referral to a competent business valuation professional.
Send your questions on family law and divorce matters to “Ask Carolyn…” at askcarolyn@rhinotimes.com, or P.O. Box 9023, Greensboro, NC 27427. Please do not put identifying information in your questions. Note that the answers in “Ask Carolyn” are intended to provide general legal information, and the answers are not specific legal advice for your situation. The column also uses hypothetical questions. A subtle fact in your unique case may determine the legal advice you need in your individual case. Also, please note that you are not creating an attorney-client relationship with Carolyn J. Woodruff by writing or having your question answered by “Ask Carolyn…”
What a sloppy and careless answer!
The man did NOT say he acquired a business; he said he started the company – himself. He mentions no input whatsoever by his wife. She may have had a job of her own and contributed nothing to his business.
“Carolyn” is clearly fond of making unwarranted assumptions, and continuing to erroneous conclusions.
Starting the business during the marriage is the same legally as acquiring it.
When a person is making more to stay home than get a job ,most look at it as free money and accept and stay home.This is just a big hook for the Dems to get everyone hooked and cause our economy to collapse.Check all Red states to see that they have stopped the free money from Joe.King Roy is still at the trough to get that free money.He is not (doesn’t care) concerned about sinking NC deeper in debt to the feds.All Dems care about is taxing you beyond your means and then giving it to people so they will get Hooked on government’mind and soul’.This is the beginning of Marxism.I hope all Guilford County would be smart enough not to accept,but I know that 10-20. % of people will accept because they are and want to be on the Dole. Let’s vote out these scum bags called Democrats.