division of business

[stresseddivorce]

What is the name of your state (only U.S. law)? Florida

So i have posted on here before and appreciate the answers but divorce has still not been finalized yet. Something that came to light is the value of my business. I am a chiropractor and my wife is not accepting my offer of $6000/month for the divorce. Basically i earn about $150k/yr and i am concerned about having to give up money from my practice to her on top of everything else. She is not a professional and has not worked in 12 years. We have two kids 9 and 12. My lawyer says i am already offering two much monthly but i am concerned about my clinic. What advice can you give? This is really stressing me. My attorney says if we go to court, i could have to pay for the length of the marriage(15 yrs) instead of the 9 i am offering but most likely pay $1000 to $1500 per month less than i am offering.

 

[mistoffolees]

I certainly wouldn't want to second guess your attorney - he knows the local climate, the judge, and so on.

The first advice I can give is - have you gotten an appraisal for the business? Many professional services businesses have little value outside of the owner. It could be that an appraisal would be quite low - so you wouldn't have to pay her much for her equity in the business.

Of course, don't go out and get an appraisal without discussing it with your attorney. There are times when this wouldn't be necessary.

Your proposed alimony seems quite high. That's $72 K per year - or very close to have of your gross. If the court imputes even minimum wage to her, that puts her at around $16 K. From your gross, you probably have some professional expenses to subtract. So even if you give her half of the difference, $6 K seems too high.

Your proposal is $648,00 over 9 years. The attorney says you'd probably pay $810 K to $900 K over 15 years. Considering how large a chunk of your income the first number is, you might actually be better off with the latter number. With even modest inflation, your income should be significantly higher in 15 years.

 

[LdiJ]

I certainly wouldn't want to second guess your attorney - he knows the local climate, the judge, and so on.

The first advice I can give is - have you gotten an appraisal for the business? Many professional services businesses have little value outside of the owner. It could be that an appraisal would be quite low - so you wouldn't have to pay her much for her equity in the business.

Of course, don't go out and get an appraisal without discussing it with your attorney. There are times when this wouldn't be necessary.

Your proposed alimony seems quite high. That's $72 K per year - or very close to have of your gross. If the court imputes even minimum wage to her, that puts her at around $16 K. From your gross, you probably have some professional expenses to subtract. So even if you give her half of the difference, $6 K seems too high.

Your proposal is $64,800 over 9 years. The attorney says you'd probably pay $81 K to $90 K over 15 years. Considering how large a chunk of your income the first number is, you might actually be better off with the latter number. With even modest inflation, your income should be significantly higher in 15 years.

The 150k could be his net business income rather than his gross.

 

[mistoffolees]

The 150k could be his net business income rather than his gross.

Could be. Either way, $6 K would be more than 1/2 of his income (if the court imputes her even minimum wage).

 

[LdiJ]

Could be. Either way, $6 K would be more than 1/2 of his income (if the court imputes her even minimum wage).

While I understand your point, based on his prior threads the 6k appears to be inclusive of child support as well as alimony...and it appears that he also wants to protect his practice as his own sole property.

I am also thinking that he may be trying to negotiate a settlement that is favorable to him taxwise...and he may be messing up there a bit.

I think this is one of those instances where he should be listening to his attorney and not relying on the advice of an internet forum.

I also don't get your numbers at all...I understand where the 72k comes from but not any of the rest of your numbers. However I honestly don't think its relevant because I think he should be relying on the advice of his attorney...and perhaps a local tax professional.