“Non-operating assets” might not factor into a business’s daily operations, but they could have value. An entrepreneur might own three restaurants and keep spare kitchen equipment in storage. Someone who runs a professional services office could store additional furniture and computer equipment until needed. These items might not factor into any Arizona business proceedings, but they could draw significant attention during a divorce.
Non-operating assets and divorce proceedings
When spouses divorce, questions arise about asset and property distribution. Negotiations could involve all marital assets that have value, including those related to a business. Even though the assets might not currently be in use, questions about their worth may arise during settlement talks.
The valuation of non-operating assets could prove somewhat challenging, depending on the assets in question. Unused credit card points would be worth their redeemable cash or merchandise. A spare motorcycle or computer may suffer from depreciation, which affects the value negatively.
Certain assets may require an appraisal to determine their worth. Both sides in the divorce probably want to determine accurate valuation figures before agreeing to any property division.
Dealing with non-operating assets
Understanding how non-operating assets factor into business valuation may provide better insights into how to approach settlement negotiations. One spouse might not have much involvement in a business, so that spouse may not realize how much non-operating assets factor into the business’s overall value. Once the spouse understands what the assets are worth, approaches to a settlement might change.
How the business ends up divided during a divorce could depend on many factors. Sometimes, the business may go up for sale, and the two spouses share the proceeds equally. In other cases, one spouse may receive the entire company, and the other spouse receives sole ownership of other assets. The unique considerations of individual divorces factor into the decisions.