Many people in this digital age have started an online side hustle business. Whether it is a passion project or simply a creative outlet, a side hustle can be extremely lucrative. If you face a divorce – and the division of your marital assets – what exactly happens to this online business?
Is it the same as a brick-and-mortar business?
If you established a business before getting married, the consensus is that it is separate property, as long as your spouse did not become involved in any way. However, if you opened the doors during your marriage, North Carolina law considers it to be marital property. In that case, your business assets will be subject to property division.
Is it the same for an online business? The short answer is yes. You will have to divide business assets accrued during the marriage, even for a side hustle. Of course, valuing and dividing such assets will involve some complex details.
What do you do with your online business?
One of the most important steps in dividing business assets in divorce is obtaining an accurate valuation. After all, you cannot go about dividing business assets without knowing what they are worth. In terms of an online business, you will often have to consider:
- Income from all sales
- Digital assets
- Any physical assets related to your business
Like with a brick-and-mortar business, it will be helpful to seek counsel from a professional to value your business assets. Obtaining a valuation is necessary. However, there are ways you can protect the business you built throughout divorce and even property division. It is important to prepare yourself and understand the solutions available to secure your business’ future, as well as your own.