Assets of the self-employed


#1

Dear polara:

Greetings. Of course you should include provisions in the separation agreement about the business. If you don’t provide in the separation agreement for the business, then your wife may be able to obtain some, if not half, of the business value in the future. Also, since you make less, what about alimony provisions? Men can receive alimony in NC also.

Now, if I did not answer your question, please let me know, as I had some problem determining exactly what you were asking. Thank you.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

ROSENDIVORCE.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#2

Thank you. I was specifically wondering if there were any protective measures I could take prior to an arbitrator or business appraiser looking at my business to be sure it was valued at liquidation value as opposed to the potential earnings value. As it is a graphic design business, the real value lies more in my skills and contacts than in the computers and desks, but I want to be sure the business is valued accordingly.


#3

Dear polara:

Greetings. Recently a new case came down that dealt with “speculative values” of businesses. A liquidation value is probably one of those speculative values, especially if you are not planning on liquidating the business.

Now, there are other ways, even using a earnings approach, that can help you discount the value appropriately since you are the key asset. For example, if the business is not a “turn key” business (meaning that we cannot simply place someone else in your shoes, like a hired manager) then your business is likely to be worth less than if anyone could do your job. Thank you.

Janet L. Fritts
Attorney with Rosen Divorce
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

ROSENDIVORCE.COM

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.


#4

My wife and I are setting the ground rules for a separation agreement. While it is relatively amicable, I would like to know if I should take steps to protect my business. I am the president and sole full-time employee but have a part-time assistant. It is an NC corporation and I am the sole stockholder. The business was started during our marriage. If it matters, my income is significantly less than my wife’s. The business is operating at aprofit and if liquidated the assets would be greater than debts. Thanks.