When it comes to high-asset divorce, it can be difficult for couples involved in the construction industry to transform their assets. Construction projects, companies and real estate are high-value assets and the division of these assets can complicate the divorce process by making it more complicated than it needs to be, as many different legal disputes can arise, including the transfer of the business, valuation, tax planning, etc.

Valuation of a Construction Company

In order for the divorce to be considered as a High Asset Divorce, the value of the company owned by the companies operating in the construction sector must be large. Construction companies have many different assets, such as real estate, equipment and projects, so determining the company’s assets can sometimes be difficult and different methods need to be used.

The valuation process will need to take into account the value of real estate and land, projects and construction in progress, and equipment and machinery. At the same time, it is very important that this valuation process is carried out by an impartial person, as a wrong valuation can lead to bigger problems between the parties, which may need to be addressed elsewhere.

Asset Allocation and Legal Challenges

Couples that have a construction company also need to allocate prospective projects, the financial position of the company, receivables, payables and equipment. In terms of the distribution of equipment and machinery, the equipment owned by the company may be one of the most valuable assets between the couple, including construction machinery and vehicles. Decisions need to be made on how to allocate these machines between the pairs and how to ensure the continuity of the company.

In addition, ongoing projects will also need to be allocated. How to continue and share unfinished projects is an important issue for both parties and is very important for the continuity of the company.

Company shares are another factor to be considered. If the couple jointly owns the company, the division of the shares can be one of the most difficult stages for the couple, as it is at this stage that disagreements between the two people are most likely to arise.

Business Continuity and Management

Couples may want to ensure the continuity of the company, even if they are divorcing. Even if there is a disagreement between the 2 parties, steps are taken to make decisions about the management of the business, project continuity and how operations will be carried out. Management changes can be made between the parties, which can be seen as an agreement that will ensure the continuation of the business. If one of the parties remains in charge, it is possible for the company’s operations to continue smoothly.

Or, with the help of an external independent administrator, the parties’ disputes can be resolved and this person can help ensure that the construction projects and the company’s operations are carried out in the most effective manner.

Transfer or sale of the company

People may not want to keep the company after a divorce and in such a case they can either transfer it or sell it. This means that all assets and projects related to the construction industry will be transferred to a seller. This sale is also carried out within the framework of an agreement determined by the parties and the lawyers will determine how to transform the value after the sale.