How Can I Protect My Business Assets in a Divorce?
If you are running a successful business, you do not want to have to give up a chunk of it just because you got divorced. A business can be considered marital property though, so it is important to know how you can protect your business assets and fight back against anyone who wants to take a piece of them away from you. Our Morris County, NJ divorce lawyers are ready to help you.
Can a Prenuptial Agreement Protect My Business Assets?
A prenuptial agreement is actually a great way to protect your business assets. We know that it can be tough to broach this topic, since no one wants to think about divorce before marriage even begins, but just think of this as responsible financial planning for your future. Both you and your spouse can use this agreement to protect your own assets and make the divorce process far less contentious. It’s the smart and mature move to make.
Are My Business Assets Considered Separate or Marital Property?
What really determines whether or not some of your business assets will go to your spouse is what kind of property they are considered. Something can be marital property or it can be considered separate property. Marital property gets split up during a divorce. If you established your business while you were married or your spouse played a big role in running it, then it is likely that your business assets will be considered marital assets.
However, if you established your company before you were married and your spouse did not have any kind of role in your business, then it can be much easier to argue that it was a separate property. There still might be some ways for your spouse to argue that they are owed a share of your business, but a lawyer from our firm can help you contest those arguments.
What Are Some Mistakes to Avoid If I Want to Keep My Business After Divorce?
Even if your business is established before your marriage, you still have to be careful about how you run it and how its finances are connected with your own. One big mistake that people make is using joint funds to prop up their business or invest in it. As soon as you commingle that marital money with your business, you will have a hard time arguing that it is separate property.
You should also not give your spouse a role in your business. Even if you think that it’s something minor, like answering phone calls or dealing with some paperwork, you cannot be sure how things will play out in court later. A contribution is a contribution, and this may be enough to convince a judge that some of your business assets rightfully belong to your spouse.
Schedule Your Consultation Today
If you are serious about protecting your business assets, you need the right team on your side. Contact Townsend, Tomaio & Newmark and schedule a consultation today. We can tell you more about how we may be able to help you get a better result from the property division process.