When Business Owners Get Divorced
Divorce is a complicated matter. When a family owns a business, the already complex situation can become overwhelming.
Whether one spouse owns the business while the other is employed elsewhere, one spouse works the business while the other takes care of the home, or they work together, if a business is marital property, New Jersey courts will allocate the asset equitably. This means that the court will take many factors into consideration and divide the value of the business is a fair and just manner to both parties.
Even if the business is established as separate property before the marriage, some courts will consider appreciation of a business to be marital property to be equitably distributed. When facing divorce, it is important for business owners to consider factors that can impact their future and the future of the company.
If you need an attorney to guide you through your legal matter and protect your interests, contact The Law Office of Toby Grabelle, LLC. You can reach our Red Bank law offices by phone at 732-582-5061 or online by filling out our brief contact form.
Assigning Value To Business Assets
If your business is considered marital property by New Jersey courts, it will be assessed for its value. Financial experts will investigate the bookkeeping and records of the business. In some cases, this is conducted by the other party’s representation. Other times, it is conducted by a court order so that the judge can establish a clear picture of the business.
When a court orders an inquiry into a business, it can have a serious impact on the bottom line when a company is sensitive to the circulation of confidential information. If a court-ordered inquiry finds any discrepancies, the court is mandated reporters to the Internal Revenue Service and opens up a company to further government probes.
Can I Protect My Business?
When marriage may be on the horizon, it is best to consider protecting your business before typing the knot. A common way for people to protect their business from the pitfalls of divorce is through a prenuptial agreement. Though many find it hard to consider a prenuptial agreement, it may be in your best interests. Through a prenuptial agreement, you can establish the business as separate property and protect any change in value as well.
If you and your spouse work together and own a business, it may be in your best interests to draft a shareholders’ agreement. Through a shareholders’ agreement, a couple can agree to terms if the marriage doesn’t work. A shareholders’ agreement can detail the mechanism for valuing each party’s interest in the business, assign ownership in the face of divorce, and even limit the transfer of ownership.
Contact An Experienced Divorce Lawyer In Monmouth County
We understand how complicated a matter divorce can be. When a business is involved with a divorce, an already complicated matter can be overwhelming. If you need an experienced attorney to guide you through your legal matter and protect your rights and interests, contact our law offices today online or by phone at 732-582-5061.