There are few things more important to a business owner than his or her business. However, if you are currently going through the divorce process, your business may be on the line. Continue reading and contact our New Jersey divorce attorneys to learn more about business owner divorce and how our firm can help if you are currently going through one. Here are some of the questions you may have:
Is a business considered marital property in a divorce?
Oftentimes, when one spouse owns a business, he or she assumes that the business exclusively belongs to him or her. While in some cases, this is true, oftentimes, businesses are, in fact, considered marital property, and are, therefore, subject to equitable distribution during the divorce process. This is because even if your spouse did not own the business, he or she may have contributed to the marriage in some other way, even non-monetarily. For example, if you ran your business while your spouse stayed home and raised your kids, performed daily chores around the house, and more, he or she may very well be entitled to a portion of your business in a divorce.
What is different about a business owner divorce?
Business owner divorces are largely similar to more standard divorces, however, the key difference is that oftentimes, businesses are complex assets that must be valued correctly for them to be equitably distributed. This means disclosing your business’s value, debts/liabilities, and any other financial information about your business. In many cases, when this is improperly done, the IRS will become involved in the matter, which could lead to serious legal issues in the future. This is why you need an experienced attorney on your side who can work to ensure you submit all of the necessary documentation properly and completely.
Can I protect my business from a divorce in New Jersey?
Fortunately, in most cases, you can. For example, if you are not yet married, you can draft a prenuptial agreement that can outline what will happen with your business, should you ever get divorced from your future spouse. Additionally, if you are already married, you can draft a postnuptial agreement that can address all of the same issues, including what would happen with your business. Finally, if you and your spouse jointly own a business, you can draft a shareholder agreement, outlining each of your interests in the business and what the future ownership of the business will look like, should you ever get divorced.
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.