A divorce can involve a variety of complex financial issues, including determining how a couple’s marital assets will be divided. These concerns can be especially consequential for business owners, and some of the most important aspects of this process will be related to determining the value of business interests. A proper business valuation is crucial for ensuring that marital property can be divided fairly and equitably. To address this issue correctly, a business owner or their spouse can work with an attorney who has experience addressing complex financial concerns related to business interests and other valuable assets.

The Importance of Business Valuation in Divorce

When a couple decides to end their marriage,  marital property and assets are divided fairly. This includes any business interests owned by either spouse. A proper valuation is essential to ensure that both parties receive an equitable share of the full value of the marital estate, including the true value of the business. Even if a business is a non-marital asset that was owned by one spouse before the couple was married, a business valuation will be necessary, since this will help both parties understand the financial resources that will be available to them going forward.

A thorough valuation provides an accurate assessment of the business’ worth, taking into account factors such as revenue, expenses, assets, liabilities, market conditions, and future earning potential. A business valuation can also help prevent one party from undervaluing or overvaluing the business to gain an unfair advantage when dividing assets.

If you have made the decision to file for divorce, you will need to address a variety of financial issues. The divorce process involves the division of assets and debts, as well as concerns related to financial support, retirement planning, and other issues that can affect your short-term and long-term finances. In addition to legal representation from a divorce attorney, it is often beneficial to seek guidance from a financial advisor as you work to legally dissolve your marriage. 

The Role of a Financial Advisor in a Divorce

A financial advisor can help manage money matters and provide advice on investments, taxes, and other financial concerns. When it comes to divorce, their role can extend beyond traditional financial planning. A financial advisor can assist you in making informed decisions about your finances during and after the divorce process.

Here are some ways in which a financial advisor can assist you during your divorce:

Moving forward after a divorce can be challenging, especially for parents who need to establish new living situations and determine how they will share the responsibility of raising their children. For divorcing parents in Wisconsin, it is important to establish positive co-parenting relationships, which will ensure that both parents can continue to play an active role in their children's lives. While co-parenting may present its own set of challenges, with effective communication and cooperation, parents can make sure they are acting in their children’s best interests when sharing custody and physical placement.

As you work to address legal issues related to care of your children during your divorce, an experienced attorney can help you create a parenting agreement that will allow you to co-parent your children effectively. As you address these concerns, you can do the following to make sure your family will be able to succeed in the years ahead:

Establish Clear Communication Channels

Open and honest communication is one of the keys to successful co-parenting. By establishing rules for how you and your ex-spouse will communicate with each other to discuss child-related issues, you can make sure you will be able to work together to co-parent your children. You may choose to communicate through phone calls, text messages, emails, or even dedicated parenting apps. By finding the methods that work best for your situation, you can make sure important information about your children will be shared promptly.

For any couple who is going through a divorce, one of the key issues that needs to be addressed is property and asset division. This is one of the primary financial concerns that will affect spouses. Decisions about property division will determine the financial resources available to each spouse, in consideration of establishing new living arrangements, covering bills and expenses, and addressing other needs. When contemplating issues related to property, spouses will need to understand the community property laws in Wisconsin and the factors a court considers when determining division of marital assets. An experienced divorce lawyer can provide guidance on how the laws may be applied in a specific situation. They can help negotiate a property settlement and address other related legal concerns.

Understanding Property Division Laws in Wisconsin

Wisconsin recognizes marital assets as “marital property.”, This means that property acquired by either spouse during  the marriage is jointly owned, and each spouse has an equal claim to the assets they own.

The first step in determining how property should be divided will involve identifying which assets are considered part of the marital estate. Generally, any assets acquired during the marriage are classified as marital property and are subject to division. This includes real estate properties, vehicles, bank accounts, retirement funds, investments, business interests, and personal belongings.

In a divorce, the division of assets is often one of the most contentious issues. All of the property a couple owns will need to be considered, and there needs to be a determination on who will be responsible for paying the debts the couple owes. As couples take steps to gain an understanding of their financial position, and make decisions about how assets and debts will be divided, one spouse may find that the other has wasted or destroyed assets. This can significantly impact the other spouse’s financial well-being, leaving them with limited resources or debts that need to be repaid. 

When one spouse takes actions that reduce the value of the marital estate, this is known as “dissipation of assets.” It is important for spouses to understand how this issue will be addressed in a Wisconsin divorce. To make sure assets can be valued correctly, and that asset dissipation will be considered when dividing assets and debts, it is important to work with an attorney who has a strong understanding of these issues and who has experience helping clients address and resolve financial issues during the divorce process.

Dissipation of Assets Under Wisconsin Law

Under Wisconsin law (Wis. Stat. § 767.63), assets that have been dissipated are known as “disposed assets,” and they may be considered during the property division process. This law states that any asset valued at $500 or more and that was removed from the marital estate within one year prior to the initiation of a divorce should be considered when dividing marital property. If property was sold to someone for less than its actual value, given away, wasted, destroyed, or is otherwise unaccounted for, it will need to be addressed when determining the full value of the marital estate. A spouse who committed dissipation may be responsible for the amount by which the total value of marital property was reduced.