by James Korman, Shareholder, Bean, Kinney & Korman, P.C. 

WARNING: The following article is NOT legal advice. Do not act on it without consulting a qualified attorney. Every case is different.

You think your job is stressful? Wait till you find out what impact a divorce can have on your business and on your income, not to mention your life.

A divorce can be more or less amicable. Having an idea about what is involved can help.

First choice: take every reasonable step to keep your marriage together. But some marriages cannot be saved, and you have to go to Plan B. A qualified divorce lawyer can tell you what your options are, what is realistic, and how you can put together your Plan B.

Plan B For the Virginia Business Owner or Professional

If you or your spouse lives in Virginia, your divorce will likely be governed by Virginia law, assuming one or both of you is a legal resident  and physically domiciled here. 
        
In general, there are four issues to be resolved. They are:

1. The divorce itself, and the grounds of divorce.
   
2. Custody of minor children.
   
3. Payment of child and spousal support.
   
4. Division of marital property.  
   
   

I am going to start with the fourth, because it is the category that can most affect your business.
Virginia is an “equitable distribution” state. In equitable distribution, marital property is divided equitably, meaning fairly. The Virginia Court of Appeals has stated that “equitably does not mean equally.”
First, says the Code of Virginia, only marital property is subject to division in a divorce. So it has to be determined what is marital and what is separate.

Separate Property. Property you or your spouse owned before you married is separate. Property you or your spouse inherits, or that either receives as a gift, is separate. But, of course there are exceptions. Gifts between spouses are marital. And this is important: for any separate property to remain separate, you should try to avoid co-mingling it with marital property. There can also be “hybrid” property that is part marital and part separate.

Marital Property. Property acquired during the marriage is presumed to be marital. If you want to claim that property acquired during the marriage is all or part separate, it is your burden to prove it.
What does “during the marriage” mean? Your marriage obviously begins on the day you get legally married. In Virginia, the end date for the purposes of these financial issues is the date of “final separation.” That means the date one party moves out with no intention of returning.

So now that we know that property acquired during the marriage is presumed to be marital, what property does that include? The answer can be scary – pretty much everything.

Whether an asset is titled in your name, your spouse’s name or in joint names, it is still presumed to be marital. That will include bank and brokerage accounts, securities, real estate, vehicles, IRA’s, 401K’s, pensions and your business, whether it is a corporation, partnership, LLC or sole proprietorship. If it had its inception during the marriage, or if its value was enhanced during the marriage, it will likely be in large part marital property. And all marital property, if you recall, is subject to division between the spouses in the event of divorce. I bet that got your attention.

The court will determine the value of all marital assets, and then equitably divide those assets. Some can be divided in kind. You have 100 shares of Enron, the judge can give half of the shares (or some other percentage the judge deems as fair) to each party. Some jointly titled assets, like the marital home, or any other real estate, cannot be readily divided, so the court can order it sold and the proceeds divided.

The court will consider and value all marital property, but the court can only order the division, or sale and division, of property that is jointly titled. If your ownership interest in your business is in your name alone, the court will place a value on your interest in the business and award your spouse part of that value. You will have to either transfer to your spouse that percentage of your ownership interest, or give him/her something else of equal value:. whatever your spouse agrees to accept or the court approves.

The predicate to all of this is a valuation of an often closely held business. That can be complicated, particularly with a service business where the value is far more than what you could get for some used desks and computers. And it can be more than your share of the capital account. It often requires the hiring of an experienced forensic accountant to do the valuation. Under Virginia law, the “intrinsic value” of the business is what will be considered. With many businesses, the intrinsic value is the ability to generate profits and income, now and in the future. The evaluation will offer an opinion about the value of your interest in the business. Relying on the evidence the court thinks is most credible, the judge will determine the value, and divide it “equitably.”

I have been referencing throughout what the court would do, or what a judge would do. That does not mean you have to submit to that modern version of medieval combat – the court trial. The vast majority of cases will settle. You can negotiate, you can mediate, you can collaborate, you can even arbitrate. If none of that succeeds, you may have to litigate.

The difference in each of these alternatives has to be the subject of another article.
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The conclusion. If you do get a divorce, your income and all of your assets, including your business, are at risk. You had better see a lawyer early if you think a marital split could be in your future.

by Jay E, Reiner, CPA, PLLC and Stephanie Berman, The Reading Connection

From the volunteer’s perspective, Jay says:

Nonprofit organizations have held a warm spot in my heart for many years, dating back to my days in New York.  When I arrived on the scene in Arlington and joined the Chamber, one of the first things I did was to get involved with the Community Action Committee (CAC).  In the four years since I started attending CAC meetings, I’ve had the pleasure of meeting lots of wonderful, giving, caring people who are totally devoted to the causes of the organizations that they work for. 

Having had a lot of experience working with the people in comparatively smaller nonprofits, I’ve seen a common thread that runs through them all, which is the need for volunteers. Oh, yes, there’s the need formoney too (duh!) but let’s stick with the volunteer thing.  The Arlington Chamber has upwards of ninety nonprofit members, and within these organizations you’ll probably find more tasks needing to be done than there are staff people, which brings us to Volunteer Arlington Day. 

Since being a part of the Chamber and the CAC, I’ve participated in Volunteer Arlington Day every year.  From picking up garbage on Columbia Pike for Arlingtonians For a Clean Environment, sorting out doggie “adopt me” kits for Homeward Trails, to putting stickers on kid’s books and boxing them up for The Reading Connection, I’ve been able to do my part to help these organizations accomplish their nonprofit missions.  And at the same time I’ve had fun and met a lot more nice people; what a bonus! 

Volunteer Arlington Day is Tuesday April 21st.  It’s just a few hours of your time, but it’s time that will be greatly appreciated by the organization you’ll be matched with.  So please consider volunteering this year.  You’ll be glad you did!

From the nonprofit’s perspective, Stephanie says:

Arlington is home to a vast number of nonprofits, providing every type of service you can imagine.  There are organizations that serve the county’s hungry and homeless.  There are those who provide affordable housing and healthcare to those who need it.  Even others provide art, enrichment and companionship.  Many of these nonprofits have small staffs, but huge ambitions for helping the community.
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Volunteer Arlington Day is your opportunity to spend an afternoon helping one of these nonprofits fulfill their mission.  You’ll dedicate a few short hours, but the impact can be immeasurable.  Having a group of willing volunteers to conquer a long lingering project is such a treat to a nonprofit organization.  It may not be the most glorious work, but that’s why we need you to help.  So, roll up your sleeves, grab a friend or your work team and sign up today.  Who knows, you may get to know an organization you’re inspired by, revive a love of mulching or meet a new friend in the process.  Your community thanks you for your time and effort!

by Ron Novak, Segue Technologies, Inc.Living the ShopChamber Ethos

The ShopChamber initiative was unveiled this past year as a way to encourage member-to-member commerce, referral and support for Arlington businesses. I am not going to rehash the specifics of theinitiative; however, I would like to share my experience in implementing the ShopChamber philosophy at my company, Segue Technologies, Inc. When we joined the Chamber in 2008, we really wanted to go all-in and do our best to become actively involved. For me, one of the easiest ways to do this was to use other Chamber Members for products and services that we were already acquiring. We still did our due diligence with vendor selection; however, we would almost always look for Chamber member referrals first before using other sources.

This has proven to not only be a good strategy for finding amazing local vendors and partners, but also in growing our network relationships in the community. And the best part? In most cases, it’s actually easier to “ShopChamber” and have a good result than it is to find qualified vendors with unverified online referrals and web searches. The reason I say this is because Arlington Chamber members are not shy about sharing their exceptional experiences in working with other members, all you have to do is ask. So I did. And I do. All the Time.

ShopChamber in Action

Several years back, we needed some assistance with web copy strategy so we asked a few members if they had any recommendations. They quickly pointed me to Greta Menard of Capital MarCom. I am so glad they did. When we were much smaller, we didn’t have the resources to have a full time staff manage our web copy, content strategy, and communications channels. Capital MarCom helped us implement a marketing and communications strategy that directly led to improved revenue growth without having to hire a full time team to support it. This allowed us to accomplish our goals quickly while keeping our overhead low.

Another example of how Shop Chamber benefited Segue significantly was with our recent office re-location. Our lease was coming to an end and we wanted to ensure that we would get a great deal with our new space. After hearing rave reviews from other Chamber members, I decided to work withDavid DeCamp of NGKF to help us find a new space, negotiate lease terms, and ensure a smooth transition from our current space. Not only were the negotiations a breeze, but we were able to lower our rent substantially while finding a space that better fit our requirements.

During this process, we also hired fellow Chamber member Michael Foster’s team at MTFA Architectureto design our new space. His team not only provided us with a design that our clients and employees love, but was also able to re-imagine many existing features of the space in ways that ultimately saved us money. From there, we hired Washington Workplace (who we had worked with previously) to design, customize, and procure additional office furniture that matched our existing items perfectly. This minimized the amount of furniture we had to purchase, which provided additional savings. Finally, when it came time to plan the upgrade, move, and installation of our office communications equipment, I went directly toMcEnroe Voice & Data. The solution they implemented allowed us to keep a majority of our existing equipment while still providing us with the ability to scale our systems extensively in the future. As you can see, almost every aspect of our move was orchestrated with the help of fellow Chamber members and we couldn’t be happier with the result.

I would like to mention some other examples where we successfully acquired exceptional services from other Chamber members: Bean Kinney & Korman for Software Intellectual Property legal advice,Leadership Arlington for corporate training and leadership development, John Marshall Bank for business banking and financing, Top Golf for corporate events, the Sheraton Pentagon City for meeting facilities,Main Event Catering for private events and parties, and Willow for our annual Holiday Party. I even adopted my dog from the Animal Welfare League of Arlington!

Primary Benefits of ShopChamber

I could go on and on about all of the great Chamber members I have patronized (by my last count I have used over 50 Chamber members over the last several years) but I think you get the point. So what is the take-away from this? I wanted to highlight two reasons that I feel you should consider shopping locally with fellow Arlington Chamber members:

- Chamber members, especially those recommended by other members, are less likely to dial it in and deliver subpar services– I didn’t conduct scientific research on this one but I can speak from experience that I have personally witnessed fellow Chamber Members going above and beyond what I would consider customary to ensure that I had a positive experience. I call this the “Don’t let another Chamber Member down” factor. One example of this was with Weiler’s Lawn & Landscape. They installed some drainage relief in my backyard to alleviate some heavy sogginess. After a wicked storm, one of my down spouts became dislodged from my house. They could have easily made the argument that it was unrelated to the job they were working on, but instead chose to replace it free of charge. This move impressed me and they have gained a happy customer that will refer them often, for life.

- It increases the exposure of your organization as “Chamber-friendly” or “Chamber-focused” – As I have already mentioned, fellow Chamber members like to support each other. In a lot of ways I think providing great referrals that result in a positive outcome is infectious. I know I personally get a lot of satisfaction when connecting people in need of a product or service with those providers that I know can deliver. When other organizations witness the intentional nature of “Shopping Chamber” they are likely to do the same, which can and will ultimately help your organization thrive.

So the next time you need products or services for your business, or even for your household, check out the Chamber’s Business Directory to see if there are organizations that provide what you are looking for. Better yet, reach out to fellow Chamber members or staff to ask for recommendations. You will be glad that you did.
About the Author
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As part of Segue’s ownership team, Ron Novak leads the Commercial and Non-Profit customer verticals. Ron is currently focused on leading development of Mobile Technologies to help businesses reach their customers in exciting new ways and supporting Non-Profits in better serving their members.