Equitable marital assets and debt distribution are second only to child custody in contentious divorce matters. This equitable distribution may be further complicated by the two parties in a divorce sharing a business. If you and your spouse co-own a business, please read on, then contact one of our experienced business division and divorce attorneys in Bergen County, NJ to learn how a shared business affects a divorce in NJ.
How does shared ownership of a business factor into a divorce in NJ?
Marital property laws in the Garden State are such that most businesses and business interests will be subject to equitable distribution during a divorce unless there is an existing prenuptial agreement or marital agreement. Each party’s percentage of entitlement to the shared business will depend on a host of factors. To make the ultimate determination of marital and separate property, you and your spouse will need an accurate and full valuation of the business as well as an extensive negotiation throughout the division of assets process.
How do you value a business during a divorce in NJ?
As alluded to above, your business and business assets will need to be accurately valued before they can be divided during a divorce. Unlike most division of asset settlements, inaccurate business valuation can reopen the division of assets process. To get an accurate valuation of your business, you should consult with any or all of the following:
- Certified public accountants (CPAs)
- Forensic accountants
- Investment analysts
- Property appraisers
These professionals will help you get an accurate picture of your business’s financial state, its worth and its potential for future growth. Since you are meeting with other professionals, you should reach out to one of our skilled Bergen County, NJ property division attorneys today.
How is a business divided during a divorce?
The actual division of assets process can only begin after a business or business holding has been properly valued. Considering that, according to New Jersey equitable distribution law, “equitable” is not always synonymous with “equal.” Instead, it equates to “fair” and “reasonable.” For instance, one spouse may retain complete ownership and control of the business in exchange for a monetary payment, payment schedule or assets of relatively equal value. The business may also be divided into separate entities, with each party assuming ownership over individual parts of the business. That will all depend on your circumstances and your choice of attorney. Our firm will fight for the most equitable solution for all parties, so please give us a call today.
Contact our experienced Bergen County firm
At Townsend, Tomaio & Newmark, our attorneys have extensive experience helping clients to understand and protect their legal rights before, during, and after the divorce process in towns across New Jersey and Bergen County, including Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee. To speak with our team of divorce lawyers today in a free and confidential consultation regarding your concerns about your divorce, please contact us online, or through our Hackensack, NJ office at (201) 397-1750.