If you are a business owner who is facing a divorce, you may be wondering how the legal process may impact your business. Continue reading to learn if your spouse can get part of your business, how your business will be valued by the court, and the ways to protect your business in a divorce. Contact our experienced divorce attorney for assistance with your divorce proceedings.
Can my spouse get part of my business in a divorce?
In a New Jersey divorce, the property is typically divided into two categories: marital property and separate property. Separate property refers to the property that was acquired outside of or before the marriage. Marital property refers to property that was acquired during the marriage. Your business will likely become marital property if it was created after you were married. It is also important to note that it is possible for your business to become marital property over the course of your marriage, even if your business was started prior to your marriage and even if your spouse was not directly involved in your business. This is a reason for many business owners to seek legal guidance for support through their divorce. To learn more about how our firm can help, contact The Law Offices of Paone, Zaleski & Murphy today.
How will my business be valued?
Your business will be valued by a financial expert hired by the court to assess your business based on the business’ debt, 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 with the entirety of your financial situation for this process to take place smoothly. If you fail to do so, the court will likely report any inconsistencies to the IRS which can trigger legal issues down the road.
Can I protect my business?
There are three primary ways to protect your business from a New Jersey divorce. The first is drafting a prenuptial agreement with your spouse before you are married. However, if you are already married, you may want to explore drafting a postnuptial agreement. Finally, if you and your spouse jointly own a business, a shareholder agreement may be in the cards for you. A shareholder agreement will recount the value of each party’s interest in the company and limit the transfer of ownership to another party. To learn more about how you can protect your business from a divorce, contact our experienced divorce attorney today.
CONTACT OUR EXPERIENCED NEW JERSEY FIRM
If you require strong legal representation for matters of divorce and family law in Rumson, Monmouth County, or anywhere in New Jersey, contact The Law Offices of Paone, Zaleski & Murphy to schedule a consultation with one of our experienced attorneys today.