What to Know About Divorcing With a Business in New Jersey
To learn more about how you can protect your business during your divorce process, continue reading and reach out to our skilled firm today. Our Morris County NJ divorce lawyers are dedicated to ensuring that you and your future are a priority. Contact us today to obtain competent legal representation.
Is my business considered marital property?
Assets are typically divided between both parties when a couple is going through a divorce. It is important to recognize that the property is separated into two categories: marital property and separate property. Marital property refers to any assets that were obtained during the course of the marriage. Because of this, it tends to undergo equitable distribution in the division process. Separate property, on the other hand, involves assets that were acquired before the marriage or assets that were chosen to be exempt in a written agreement between the spouses.
You will want to note that in some cases, a business may be deemed as marital property in divorce proceedings. This indicates it may be equitably distributed between both spouses. While this is often misunderstood as an equal split, it is truly a fair and reasonable division.
How is my business valued in a divorce?
In divorce proceedings when a spouse is a business owner, the court typically hires the services of financial experts. This is to achieve a thorough examination of their business records for the proceedings. There are some cases in which the court may even request an investigation into the practice and expenses of the business in order to determine its financial state. It is essential that this information is provided thoroughly and accurately, otherwise, any inconsistencies can be reported to the IRS.
How can I protect my business?
An individual can take a number of different steps to protect their business from equitable distribution in a divorce. You can accomplish this by drafting a shareholder agreement. This document tells the value of each party’s interest in the company in addition to limiting the transfer of ownership to another party. This can also be done with the creation of a prenuptial or postnuptial agreement. This summarizes how any assets should be divided in the event of a divorce, permitting a person to keep their business safe from equitable distribution.
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At Townsend, Tomaio & Newmark, LLC, our seasoned divorce and family law attorneys ensure that through the process of resolving your family matter, you feel empowered, not overwhelmed. Providing unwavering support, undivided attention, and unflinching advocacy, our team invests in your cause, working tirelessly to pave your path toward a brighter tomorrow. If you need an experienced legal team to guide you through your divorce, contact Townsend, Tomaio & Newmark L.L.C today.