For Michigan business owners in and around Oakland County communities like Troy, Rochester Hills, Novi, Birmingham, and Bloomfield Hills, protecting your business during divorce requires a strategic legal approach and a firm understanding of Michigan divorce law. A business started or grown during the marriage may be considered marital property, meaning your spouse will likely have an interest in your business under Michigan’s equitable division principles.
How Michigan Law Treats Businesses in Divorce
In Michigan, marital property is not automatically split 50/50. Instead, Michigan courts aim for a fair and equitable division of property, including business interests, based on a variety of factors. If the business was formed during the marriage, it is generally considered marital property. If it existed before the marriage, the increased value of the business since the date of the marriage may still be divisible depending on the existence of a prenuptial agreement and:
- Whether the value of the business increased during the marriage
- Whether marital funds or spousal labor contributed to its growth
- The role each spouse played in running or supporting the business
Business Valuation in Oakland County Divorce Cases
Before a business can be divided, it is first appraised or valued. In most cases, when the attorneys cannot agree on a valuation expert, the court will appoint or approve a neutral business valuation expert to conduct a thorough assessment of the business. This valuation provides the foundation for determining the current value of the business and the value of the business on the date of the marriage if it existed before the marriage. This process often includes reviewing:
Income and Profitability:
- Financial records, tax returns, and profit/loss statements
Assets:
- Equipment and inventory
- Property owned by the business
- Business bank accounts
Liabilities:
- Debts, leases, or operating costs
- Outstanding loans or business credit
Consulting with a family law attorney with extensive experience about protecting your business early can prevent major problems later. A highly trained attorney can review your business structure, ownership documents, and any prenuptial or postnuptial agreements. They can then advise you on the best steps to take given your unique circumstances. Our attorneys have been fighting for business owners for decades.
Speak With an Oakland County Divorce Lawyer Today
At The Kronzek Firm, we help clients in Royal Oak, Farmington Hills, Southfield, Troy, and throughout Oakland County navigate complex divorce cases involving business interests. Our team of experienced attorneys can help you:
- Ensure an accurate valuation of the business
- Understand your financial rights and obligations
- Negotiate a fair property settlement
- Protect your livelihood and future income
📞 Let us help you secure a fair outcome in your Oakland County, Michigan divorce. Call our Farmington Hills office 24/7 at (248) 479-6200 to schedule a confidential consultation with a trusted Metro Detroit divorce attorney.
[Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, consult with an experienced Michigan divorce attorney.]