When a couple gets divorced, separating their finances can be complicated. This is especially true if the couple owns a business together. Read on to learn more about how a divorce might affect your business in New Jersey.
Is a Business Separate or Marital Property?
When it comes to distributing property in New Jersey, there are two main types of property: marital and separate property. Separate property deals with assets obtained before or outside of the marriage. This may include inheritances or gifts. Marital property, on the other hand, essentially includes all other assets. This generally includes the marital home, retirement plans, and, oftentimes, businesses. Depending on your arrangements, your business may be subject to equitable division in the event of a divorce. It is important to note that equitable division does not necessarily mean your assets will be split 50/50, but instead they will be divided in a way that is fair to both parties.
How will my Business be Valuated?
In order to divide your business, you will have to know the true value of it. To determine this, the court will closely examine all of your business records, sometimes employing financial experts for assistance. They will analyze your revenue, your debts, your yearly expenses, and more. If the courts find any inconsistencies on your part, whether intentional or not, there is a very good chance it will launch an investigation by the IRS into your business. It is important to work with an experienced divorce attorney to avoid this.
Can I Keep My Business After a Divorce?
One of the best ways to keep your business in the event of a divorce is by creating a prenuptial agreement. This is a document that determines how your assets will be split in the event of a divorce. If you are already married, you can draft a postnuptial agreement that essentially serves the same purpose. Finally, if you jointly own the business with your spouse, you may draft a shareholder agreement.
If you have any questions or concerns about getting divorced as a business owner in New Jersey, our firm is here to help. Reach out to speak with an experienced attorney today.
Contact our experienced Ocean City firm
Matters of divorce and family law require the attention and skill of an experienced attorney who will fight for your future. Not only is your financial well-being at stake, but in a divorce, both you and your children’s emotional well-being are at risk as well. If you need a divorce and family law attorney in Ocean County, New Jersey, please do not hesitate to contact the Law Office of Sarina Gianna, LLC today to schedule a consultation.