Are you getting divorced and have your own business? Or is your partner an entrepreneur? Then a divorce or the dissolution of a registered partnership often affects the business as well. Not only your personal interests or the children come into play, but also the interests and the continuity of the business. We can imagine that in this situation you need advice in family law or international family law.
For the right advice, you need an attorney who is not only specialized in family law and marital property law, but also in the legal aspects of a sole proprietorship, partnership (Dutch: v.o.f.), LLC (Dutch: B.V.), or professional association. For that, you have come to the right place. Over the past years, our firm has had the privilege of assisting many entrepreneurs and their ex-partners with their divorce proceedings and alimony calculations.
We have extensive experience in analyzing financial statements, are well-versed in various business valuation methods, understand the tax implications of a divorce, and know the impact a divorce has on retirement. Of course, we make the correct calculations for spousal support and child support.
How can we assist you?
Business & divorce: what should you watch out for?
If you or your partner own a business, there are several things you need to consider during the divorce:
1. The marital property regime
Are you married under (limited) community of property or under marital agreements? The answer to this question determines whether the value of the business should be divided or settled. If you have questions about this, you can always contact us. Our expertise and experience enable us to answer your questions quickly.
2. Different valuation methods are used.
If the value of the business needs to be divided or settled, a valuation of the company or its shares must first take place. Various corporate law, business economic, and tax aspects play a role in this. Moreover, you can opt for different valuation methods, each yielding a different outcome. It’s important that you choose a method that suits your business and doesn’t jeopardize the continuity of the company. We are happy to assist you in this matter, of course in consultation with your accountant, tax advisor, and/or registered valuator.
3. Buyout and Alimony
A potential buyout arrangement can have implications for alimony. If your business, for example, has to raise external capital to facilitate the buyout, this can impact your income – and therefore also affect the amount of child and spousal alimony. On this matter, we are happy to advise you as well.
Emotional Support
A divorce involving your own business not only presents financial challenges, but can also be emotionally draining. The loss or division of a business you have invested years in can be drastic.
At Simmelink Lawyers, we understand these emotions and offer not only legal support, but also empathy and attention. We will assist you to make this difficult period go as smoothly as possible, keeping both your personal and business interests in mind.
Practical Tips for Entrepreneurs during a Divorce
To minimize the impact of divorce on your business, it is wise to take proactive steps. Consider drafting prenuptial agreements or having your business valued before problems arise. In addition, it may be wise to review the business structure in a timely manner and properly document contracts.
Have a plan in place to keep your business running, such as by temporarily reallocating tasks.
Have an independent valuation of your business performed for fairness.
Keep accurate financial and legal documents to be prepared for possible disputes. If you are married or in a registered partnership
Set up a team of advisors, such as a financial advisor and lawyer, to guide you.
Maintain professional communication with your ex-partner to keep business and personal issues separate and minimize conflict.
These tips help reduce the impact of divorce on your business and ensure a smoother transition.
At Simmelink Lawyers, we are happy to help you with advice and support so that your business is as protected as possible from the consequences of divorce.
Working in the business with your (ex-)partner?
Are you also connected in business? For instance, because you both are partners in a partnership[link naar detailpagina], shareholders in the same corporation[link naar detailpagina], or together part of a professional association? And can you not continue with each other in a business capacity after the divorce? Then you must decide whether the business will continue, and if so, in what form and by whom. Often, agreements for this purpose will have been made in the partnership agreement, shareholder agreement, or the deed of partnership.
Network of specialists
If you own a business and are getting divorced, it requires collaboration between different specialists. Not only between your attorney, an accountant, and a tax specialist, but perhaps also with a notary or financial planner. With our expertise and experience, we are a fully-fledged conversation partner for these advisors. We also have our network of specialists that we can engage for additional advice.
Foreign business
In a divorce with international aspects, you may also have to deal with international family law. Consider the situation where your business or one of your businesses is located abroad. In that case, you must be able to rely on the expertise of your attorneys. With more than 20 years of experience in Dutch and international family law as well as private international law, you have come to the right place.
Feel free to contact us if you have any questions about this. Do you live further away or abroad? If so, we can also guide your divorce remotely.
