In a high-asset divorce, transforming assets can prove difficult for couples involved in the construction industry. Projects, companies, and real estate are all very valuable assets; therefore, their division makes the divorce process more complicated than it needs to be because, among many other legal disputes that may arise, transfer of business, valuation, tax planning, etc. have to be taken care of.
How the Value Division Will Be
For the divorce to qualify as a high-asset divorce, there must be substantial value in companies held by firms engaged in the construction industry. This is because construction firms typically possess diversified assets, including real estate, machinery, and ongoing projects, which can complicate the assessment of company assets and often require different approaches. The appraisal procedure will have to consider the valuation of real estate and land, projects and works under construction, as well as equipment and machinery. At the same time, it is extremely important that such an appraisal procedure is done by an impartial person, as a wrong appraisal can cause even more problems between the parties that need to be dealt with elsewhere. In situations like these, you may need a legal assistance of Divorce attorney Annapolis.
What Are the Legal Challenges
If they also have a construction company, then they need to share prospective projects, the financial position of the company, receivables, payables, and equipment. The distribution of equipment and machinery can be one of the more valuable assets between them as a couple — including construction machinery and vehicles. Therefore, decisions have to be made on how to allocate these machines between the pairs and how to ensure continuity for the company. Ongoing projects will also need to be allocated.
What About the Company Shares
Company shares are another factor to be considered. If the couple jointly owns the company, share division can be one of the most challenging stages for the couple because this is when most disagreements arise between the two individuals.
Business Continuity and Management
Couples might want to ensure that the business continues, even if they are getting divorced. Even if there is a dispute between the two parties, steps are taken to ensure decisions will be made regarding the management of the business, the continuity of the project, and how operations will be carried out. Management changes can therefore be made between the parties as this can be viewed as an agreement that will determine the future of the construction company. If one party retains management, then the operations of the company can be allowed to continue.
Transferring or Selling is Also An Option
Alternatively, the disputes between the parties could be settled with the aid of an external independent administrator who would also ensure that the construction projects and the operations of the company are carried out most effectively.
After all, people may not want to keep the company following a divorce. If that is the case, they can either sell it or transfer it. This means that All construction assets and projects will be transferred to a seller. This sale shall also be carried out within the framework of an agreement determined by the parties and lawyers will determine how to transform the value after the sale.
