US Legal Forms
Legal Resources
Questions & Answers
Divorce
How is 50% of rental properties valued in a divorce involving a corporation?

How is 50% of rental properties valued in a divorce involving a corporation?

Q: How does a business get split during a divorce?

A business can be split during a divorce through valuation and negotiation. The court may order an independent appraisal to determine its worth. The business may be divided equally, or one spouse may buy out the other’s interest. Factors like contributions to the business and future earning potential are also considered.

Q: Can my wife take my LLC in a divorce?

Yes, your wife can claim a portion of your LLC in a divorce if it is considered marital property. The court will evaluate the LLC's value and determine how to divide it fairly. This may involve a buyout or other arrangements. Consulting with a divorce attorney is important to understand your rights.

Q: Can my ex go after my LLC?

Yes, your ex can pursue a claim against your LLC in a divorce if it is classified as marital property. The court may assess its value and decide on a fair division. Factors such as the duration of the marriage and each spouse's contributions will influence the outcome. Legal guidance is essential to navigate this process.

Full question:

If there are rental properties involved in a divorce; and the properties are the spouse's company, which is under a corporation. How would they determine the 50% for the other spouse. Would they use market value and take into consideration he receives rental income from these properties? Is there a simple factor?

Category: Divorce
Subcategory: Property Settlements
Date: 04/07/2025
State: Georgia

Answer:

The bylaws or other governing documents, like a buy-sell agreement or shareholder agreement, may outline the buyout terms in a divorce. Typically, divorce attorneys will seek an independent valuation from a credible expert. Factors such as goodwill can significantly impact the business's value. It’s advisable to consult appraisers who specialize in business valuations and adhere to the Uniform Standards of Professional Appraisal Practice (USPAP). Comparing qualifications and fees among appraisers is also a good practice.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Am I responsible for my husband's business debts if we divorce?

In a divorce, you may be responsible for your husband's business debts if they are deemed marital debts. Courts typically consider debts incurred during the marriage as joint liabilities. However, if the business is solely in his name and you did not co-sign any loans, your liability may be limited. It’s essential to consult with a divorce attorney to understand your specific situation and rights.

Can a spouse take half of an LLC in a divorce?

Yes, a spouse can claim a portion of an LLC in a divorce if it is considered marital property. The court will assess the value of the LLC and may award half or a different percentage based on various factors, including contributions to the business and the length of the marriage. Legal advice is crucial to navigate these complexities.

Who pays rent during divorce?

During a divorce, the responsibility for paying rent typically depends on the lease agreement and the living arrangements. If one spouse remains in the marital home, they may be responsible for the rent or mortgage. If both spouses are living separately, they may negotiate who pays rent or share the costs. Legal counsel can help clarify obligations.