Is my Spouse’s Business Marital Property?

Spouse With A Business During A Divorce

signature-962354_960_720Many times when a person comes in and is filing for divorce, they inform us that their spouse is a business owner and are interested in obtaining a share of that business after their divorce has been finalized.

When one spouse owns a business, the business has to be evaluated by an accountant that is called a forensic accountant. This accountant will investigate the business in order to determine the actual income of the company, or the business, and it will also determine a value, if there is a value for that business. This investigation process is completely done by a forensic accountant, not by the attorney.

Your entitlement to any ownership or shares of the business will have to take a lot of different factors into consideration. The business will be considered in the equitable distribution process as an asset. If the business was started before the marriage began, it is categorized as separate property, not community property. However, what also needs to be considered is the amount of community or marital funds that were put into the operation and running of the business. If a portion of the spouse who does not own the business contributed funds to the running of the business, they may be considered to partake in some of the shares in the divorce process.

If you and your spouse are getting divorced and your spouse is the owner of a business, it is important to meet with an experienced attorney and determine the possibilities that exist for the potential acquisition of shares of the businesses after the divorce has been finalized.

The Law Office of Toby Grabelle, LLC is a family and divorce law firm serving Monmouth County and all of New Jersey that would be happy to assist you in legal counsel. If you need quality legal services, contact the firm for a consultation.