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Dividing A Business In A Minnesota Divorce

Last updated on July 8, 2024

If you’re getting divorced and a business is involved, property division could get very complex. Perhaps you and your spouse are co-owners and operators of a family business, so now you have to decide what to do with it since you’re getting divorced. Maybe only one of you owns the business, but it grew in value during the marriage, so you are wondering if the increase in value counts as a marital asset.

Every situation is unique and complex, which is why it can help to contact us at Frieders & Kuhn, L.L.P.. Our law firm has been providing trusted legal services in Rochester for more than 90 years. We have the experience and knowledge to help you explore your options, and we are known for our forthrightness and dependability.

How Are Businesses Divided In A Divorce?

If you and your spouse own your business together, you have three basic options:

  • One spouse buys the other spouse’s ownership percentage
  • Both spouses sell the business and split up the money
  • Both spouses keep the business and continue working together after the divorce

If only one person is technically a business owner, the potential solutions will vary depending on the situation. Often, though, the spouse who does not own the company still has a right to a percentage of the company’s increase in value during the marriage.

Assessing The Value Of A Business

Whether you are selling the business or splitting the value, the first step is to have an evaluation done. Some tactics include:

  • Looking at comparable sales
  • Subtracting liabilities from assets
  • Looking at the earnings before interest and taxes (EBIAT)
  • Making growth projections

Odds are that you will consider numerous areas to determine the true value of the company. Once you and your spouse have agreed, then you can move forward to divide that value properly during the divorce.

Get Started Today

Experienced, dependable and professional, our staff can help with this complex legal process. Call us at 507-414-5558 or contact us online to schedule your initial consultation right away.