Business owners who are facing a divorce may worry about the future of their business. To learn about business owner divorce in New Jersey, continue reading and reach out to our experienced divorce attorney. Our firm is prepared to assist you today. Give us a call to schedule your initial consultation.
Is it possible for my spouse to get part of my business in a divorce?
Property is typically divided into two categories by New Jersey courts during a divorce: marital property and separate property. Separate property refers to the property that was acquired before or outside of the marriage while marital property refers to property that was acquired during the marriage.
If your business was created after you were married, it will likely become a marital property which means that it will be included in the equitable distribution process. However, it is important to understand that even if your business was started before your marriage, it is possible for a business to become marital property over the course of your marriage. This is unfortunately true even if your spouse was not directly involved in your business. This is reason alone for individuals to seek legal counsel through this process. Contact our firm to learn more about how we can assist you.
How will my business be valued in a divorce in NJ?
Your business will be valued by a financial expert hired by the court to assess your business. The value of your business will be based on the following factors: your businesses’ debts, revenue, and expenses. The court will then assess what portion of your business may go to your spouse. It is important that you provide the courts will the entirety of your financial situation. If you fail to do so, the court will likely report any inconsistencies to the IRS which can trigger legal issues down the road.
Is there any way I can protect my business from a divorce?
There are a few ways to protect your business from a divorce. One of the preferred ways to do so is by drafting a prenuptial agreement with your spouse before marriage. However, if you are already married, drafting a postnuptial agreement may be an alternative method you may want to explore. Finally, if you and your spouse jointly own a business, drafting a shareholder agreement. will recount the value of each party’s interest in the company and limit the transfer of ownership to another party.
Contact our experienced New Jersey firm
If you require strong legal representation for matters related to divorce or family law, Haber Silver Russoniello & Dunn is here to help. We proudly represent clients in Morris County and throughout the state of New Jersey. Contact our firm today to schedule a consultation.