What Happens to My Business if I Get Divorced?

What Happens to My Business if I Get Divorced?

If you are a business owner and are getting divorced, there is a very good chance that protecting your business is of utmost importance. Please continue reading and reach out to our experienced New Jersey divorce attorneys to learn more about business owner divorce and how our firm can help you. Here are some of the questions you may have regarding the legal process ahead:

Will my spouse get part of my business in a divorce?

There are two categories of property in a divorce: marital property and exempt property. Exempt property includes property accumulated before or outside of a marriage, such as gifts or an inheritance, while marital property includes property shared and accumulated during a marriage. Generally, businesses are considered marital property, which means that if you get divorced, your business will most likely be up for equitable distribution. Furthermore, equitable seldom means equal, which means you may even lose more than 50% of your business under certain circumstances. That is why you cannot afford to proceed without the assistance of a knowledgeable New Jersey divorce attorney who can fight for what is yours.

How do Bergen County courts value businesses in divorce?

If you are a divorcing business owner, you can expect the court to hire financial experts to analyze each aspect of your business, including your revenue, your expenses, debts, and more. If you do not provide the courts with the entirety of your financial situation, whether on purpose or by accident, the court will most likely report any inconsistencies to the IRS, which can open up an investigation into your business and cause a slew of potential legal issues. That is why you should hire an attorney who can help ensure you submit these documents accurately and completely.

Can I protect my business from a divorce?

Yes, you may. The first, and perhaps the easiest way to protect your business from a divorce is by drafting a prenuptial agreement with your spouse before marriage. However, if you are already married, you may draft a postnuptial agreement, which you may also use to protect your business in the event of a divorce. Finally, if you and your spouse jointly own the business, you may draft a shareholder agreement, which will recount the value of each party’s interest in the company and limit the transfer of ownership to another party.

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.

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