If you are a business owner, your business is your pride and joy, which is why if you are now facing divorce, you are most likely very worried about what will happen to your business and hard-earned assets. Please continue reading and speak with our experienced Bergen County family law attorneys to learn more about the impact of divorce on your business in New Jersey. Here are answers to some of the questions you may have:
Are businesses considered separate or marital property?
When couples get divorced, their assets and property will be considered in one of two categories; either marital or separate property. Marital property is subject to equitable distribution, while separate property is not. Whether a business is considered marital property will depend on several factors. For example, if a business is started and owned by an individual before marriage, it may be considered separate property. However, if the business began as separate property but its assets were commingled with marital property through the years, it may very well be considered marital property. Furthermore, even when one spouse did not play a direct role in the business, if he or she supported the business-owning spouse either financially or by taking care of the home and raising the children so that the business owner could devote time to maintaining or growing the business, it may also be considered marital property in the event of a divorce. If a court determines that your business is marital property, it will have to be assigned a value.
How will my business be valued in a divorce?
Setting a value to a business is never easy, as businesses often have complex assets and financial structures that only a financial expert, such as a forensic accountant, can calculate. For this very reason, you need an experienced attorney who can work in tandem with the accountant to ensure you properly disclose the necessary financial information regarding your business, accurately assess the value of your business, and determine whether any portion of your business may be considered separate property,
Can I protect my business from a divorce?
Fortunately, there are ways to protect your business. First, if you are not yet married, you may draft a prenuptial agreement with your partner to put in writing that your business is to remain separate property. Additionally, if you jointly own a business with your spouse, you may draft a shareholder agreement that states which aspects of the business both spouses are entitled to, as well as who will own the business in the event of a divorce.
Contact our experienced New Jersey firm
We understand how confusing certain legal issues can be, which is why we are dedicated to providing individuals with the compassionate, knowledgeable legal representation they deserve. Aronsohn, Weiner, Salerno & Kaufman has helped clients with various difficult legal challenges for over 40 years, which is why we know we have the experience needed to do the same for you. For experienced legal counsel regarding family law, litigation, business law, real estate, and criminal law, you know where to turn–contact Aronsohn, Weiner, Salerno & Kaufman today to schedule a consultation.