For Postnuptial Agreements and in cases of Divorce, the existence of a family business, a closely-held business, partnership or limited partnership can complicate matters and make the divorce settlement more difficult to resolve. If for no other reason than because owners and partners in such businesses can take their contribution more personally than for those who receive a salary or an IRS Form 1099. Understanding how to recognize and resolve such issues requires a law firm with the ability and experience to evaluate the business in question.
Iwanyshyn & Associates is staffed with legal experts and other professionals who have and do own small businesses, know what it means to “meet payroll no matter what”, and how owners of small business can use accounting practices and the tax code to their advantage. This includes detailed reviews of financial statements, the “working papers” used to prepare tax returns, as well as other business records.
We leave other firms in the “financial dust”: Most lawyers can understand basic tax returns, but they cannot review, inquire and evaluate more complicated financial information. Therefore, they usually hire accountants or other financial experts to do what we do in-house.
For most prenuptial, postnuptial agreements and divorces, the law firm of Iwanyshyn & Associates can complete all the forensic accounting your case requires with our in-house staff. This avoids the cost and time of hiring outside experts. Yes, there are many instances where it is not only prudent but recommended to retain a third-party, and we have excellent relations with many to ensure if this is needed, you get the best possible service and support. As your attorney although credentialed to do so, Deborah cannot testify as a business valuator or financial expert; yet others on staff may. Never-the-less, in these situations, the staff at Iwanyshyn & Associates is able to focus and direct the third-party accounts and CPAs. Further, our staff shall understand and interpret, advise and guide you on steps along the way to complete the various levels of business valuation and forensic accounting you need and desire to reach a fair settlement. Again, thus saving you time and expense; and is a win-win-win.
Do you and your spouse own a family, private or closely-held business, partnership or limited partnership in Allison Park, Gibsonia, Cranberry, Wexford, Sewickley, North Hills, Pittsburgh, Allegheny, Beaver, Westmoreland or Washington County or the surrounding communities of Pennsylvania?
Any type of business or professional practice can complicate matters in a divorce, including retail outlets, restaurants, physician practices, family-owned businesses and more. While every business has its own individual needs and requirements, there are three main options when working with a closely-held business during a divorce:
Business ownership will remain between both parties in the divorce: Sometimes, it may be possible to continue a working relationship even when the marriage is ending. If both parties can keep the business relationship and personal relationship separate, this option may be desirable. In many cases, however, continued ownership after a divorce will lead to more problems and disputes in the future.
The business will be sold and the profits will be divided: This option of selling the business and dividing the profits allows both parties in the divorce to gain something from the sale without having to work with their ex-spouse. Sometimes, however, it can be difficult to sell the business, and, in most cases, one spouse has been the primary operator of the business. During this period between the divorce and the sale of the business, the business must still be run by one or both of the individuals, which can cause significant problems and disputes.
One spouse will retain ownership of the business and will offset its value with other assets: This option is usually the preferable option for a private, family or closely-held business in a divorce. In order for this option to work, however, there must be a way of purchasing the value of the interest from the other spouse from within the estate or through financial leverage. This can be accomplished by trading assets such as equity in a home, IRAs or 401(k) plans, securities and cash equivalents or making installment payments.