If you own a business in New Jersey, you may worry about how your divorce could affect the future of your company. Many business owners have heard stories about businesses that were sold off or sank into dysfunction following the divorce of the founder of the company. However, it is possible to achieve a mutually successful outcome for business owners seeking a property division settlement.
Buying out the other spouse
In most cases, the business or, at least, a significant amount of its value and growth will be considered a marital asset. This depends on the length of the marriage and the age of the business as well as its level of success over the years. Therefore, it will be up for consideration as part of the property division process.
If you are the primary spouse involved in the business, you may want to keep the company and essentially buy out your spouse. Other property involved in the divorce, such as the marital home or a retirement fund, may offset the value of the business turned over to you by your spouse. If you do not have enough cash or property to buy out your spouse right away, you might negotiate a gradual buyout agreement as a form of spousal support, and your spouse’s equity stake would decrease as the buyout proceeded.
Legal considerations in a business divorce
Dividing a business is more than simply assessing the financial value and separating it. You may disagree with your spouse about the company’s valuation, and an independent estimate might be necessary. In addition, your spouse may insist on receiving a waiver of liability of all claims in litigation involving the business. You likely want to ensure that you receive all intellectual property rights and other items that are under your spouse’s name.
You want to ensure that your business emerges successfully from a divorce, and many entrepreneurs have shown that it is possible. A family law attorney may help you negotiate for a mutually acceptable settlement that protects your company and addresses issues like property division and spousal support.