What Factors Will Determine Whether I Get a Share of My Spouse’s Business?

couple on couch

When you get divorced, you split everything. Does that apply to your spouse’s business too? It can, and there are actually a few ways to get a share of your partner’s company after a divorce. A Monmouth County property distribution attorney from our firm can help you learn more about what you are entitled to and how you can show that you are owed a piece of the family business.

What Do I Need to Show to Get a Share of the Business?

Generally, you need to show that you contributed to the business and its growth in some way in order to claim a share of it in the divorce. There are a few scenarios in which a spouse can argue that they had a significant role to play in this company:

Both spouses run the company: This is an obvious one. If both you and your spouse have important roles in running the business, the court is likely to see it as a shared asset.

Both spouses helped the company increase in value: Maybe your spouse runs the business, but you brought in customers and contacts that helped grow that business thanks to your personal connections or work of your own. Even if you are not working for your spouse’s business, you did add value to it. That can be considered when property is being distributed.

You handled household duties: The contribution of a homemaker needs to be recognized here. If you took care of the house and children while your spouse focused on growing their business, we can argue that you played an integral part in the company’s success.

Joint money was used in the company: If money from both of you has been invested into the business or used to get it out of a tight spot, then you may have a claim to a share of the business in the divorce.

You contributed to your spouse’s education and training: Maybe you worked while your spouse got an education and the credentials and knowledge needed to succeed in their field. Even if you do not take a role in running their company, you have contributed to its success by supporting your spouse and you deserve something as a result.

Why is the Business Valuation Process So Important?

When there is a company involved in a divorce its value needs to be appraised. This is an important step because it can affect other parts of the divorce agreement, like child support, alimony, and how other property is distributed. There are multiple ways to value a company, including market valuation and asset-based valuation. The first looks at how much a business would be worth if it was sold right now. The latter takes all assets and subtracts any liabilities to arrive at a “book value.”

Contact Our Experienced Divorce Lawyers

If you want to make sure that you are getting your fair share of assets in a divorce, contact the Law Offices of George J. Mardinly. We can assist you throughout this entire process and fight for your claim to the family business.