Can a Divorce Hurt my Business?

If you are a business owner and are getting divorced, the fate of your business is most likely among your chief concerns. That is why if you find yourself in this situation, you must read on and reach out to our experienced New Jersey divorce attorney. Here are some of the questions you may have about business owner divorce:

How do courts determine what assets can be distributed?

Generally, in divorce, courts will first break your assets down into two categories: marital property and separate property. Separate property, simply put, is all property acquired before, or outside of your marriage. This can include inheritances, gifts, and in some instances, businesses. Generally, these assets are exempt from a divorce. However, marital property, on the other hand, is defined as all assets accumulated throughout the course of your marriage, which, in many cases, can include your business. If you are worried that your business may be at stake, you cannot afford to continue without an experienced attorney on your side.

Why will the courts value my business in a divorce?

The courts will examine several of you and your spouse’s assets when getting divorced to ensure your assets are distributed as fairly as possible. That being said, if you are a business owner, the courts will value your business to get a clearer idea of how many assets you truly own. When valuing your business, New Jersey courts will look into various business expenses and revenue, as well as ask you to provide them with all documentation regarding your financial situation. You must ensure that you submit this information accurately and honestly, for if you do not, you may be subjected to investigation by the IRS, which can open up an entirely new can of worms. Do not let this happen. Hire a firm that can help the process go as smoothly as possible.

Can I protect my business in a prenuptial agreement?

Fortunately, many business owners choose to protect their businesses via a prenuptial agreement, which is a legally enforceable document that predetermines in writing what will happen to your business, should you ever get divorced. If you are already married and have not yet drafted a prenuptial agreement, you may draft a postnuptial agreement, which serves the same purpose. Finally, if you and your spouse own a business together, you may also draft a shareholder agreement, which can also protect your business from a divorce.

Contact our experienced New Jersey firm

Our firm proudly represents clients in New Jersey who are faced with matters of family law, criminal defense, business law, real estate law, or estate planning. If you require strong and dedicated representation for any of your legal matters, please do not hesitate to contact The Law Offices of George J. Mardinly to schedule a consultation.