Is the business marital property?
The first question is how much of the business belongs to the marital estate. A company founded during the marriage is usually marital property. One started before the marriage may be partly separate, but growth in its value during the marriage can become marital, especially where a spouse's efforts drove that growth. North Carolina distinguishes active appreciation, tied to marital effort, from passive appreciation driven by outside forces.
How a business is valued
Valuing a private business is rarely simple. Experts generally weigh three approaches, and the right one depends on the company:
- The income approach, based on the earnings the business is expected to produce
- The market approach, based on comparable sales of similar businesses
- The asset approach, based on the net value of what the business owns
- Adjustments for marketability and for a controlling versus minority interest
Dividing without dismantling
Courts and parties rarely want to break up a functioning business. More often, one spouse keeps the company and the other is made whole through a buyout, a larger share of other assets, or structured payments over time. Mr. Hogan structures these resolutions to protect both the value of the business and his client's broader financial position. This works hand in hand with complex property division.
Speak with Mr. Hogan
If a business is part of your divorce, early planning protects it. Call 704-992-3330 for a confidential consultation.
Frequently asked questions
Is my business marital property in a North Carolina divorce?
It depends. A business started during the marriage is generally marital property. One owned before the marriage may be partly separate, but increases in its value during the marriage, particularly from a spouse's efforts, can become marital.
How is a business valued in divorce?
Experts use income, market, and asset approaches, often with adjustments for marketability and for control. The method and assumptions can materially change the value, so credible expert analysis is key.
Will I have to sell my business in a divorce?
Usually not. More often one spouse keeps the business and the other receives a buyout, offsetting assets, or structured payments.