What to Know About Business Owner Divorce in New Jersey

Business owners will stop at nothing to protect their business. If you are a business owner who is facing a divorce, you may be wondering how you can protect your business from a divorce. Continue reading to learn more about business owner divorce in New Jersey. If you require assistance with your legal matters, look no further than our experienced divorce firm. Contact Graves Andrews, LLC today to learn more about our service and how we can assist you.

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

There are two categories that property will be divided into in a divorce. These two categories include marital property and separate property. Separate property refers to property that was acquired outside of or before the marriage while marital property refers to property that was acquired during the marriage. If your business was created after you were married, it will likely become marital property. However, even if your spouse was not directly involved in your business or if your business was started before your marriage, it is still possible for your business to become marital property over the course of your marriage. This means that your business will be involved in the equitable distribution process.

How will my business be valued in a New Jersey divorce?

Courts will hire financial experts to give your business value by assessing your business based on its expenses, revenue, and debts. During this process, it is crucial that you provide the courts with the entirety of your financial situation relating to your business. You may consider retaining the services of an experienced attorney for assistance with this process to ensure your documents are submitted accurately and completely. If there are any inconsistencies in your documents, the court will likely report this to the IRS which can trigger a slew of potential legal issues.

How can I protect my business from a divorce?

There are a few different options to consider that may protect your business from a divorce. The first option is to draft a prenuptial agreement before the marriage. This will outline what will happen to your business in the event of a divorce. If you are already married, you may consider drafting a postnuptial agreement that will serve a similar purpose. Finally, you may consider drafting a shareholder agreement if you and your spouse share a business. This legal document will allow you to assign ownership and detail how each party’s interest in the company is valued. A shareholder agreement will also allow you to limit the transfer of ownership to another party.

Contact Our Experienced New Jersey Firm

Graves Andrews, LLC is an experienced Morris County family law & criminal defense law firm serving all of New Jersey. Contact Graves Andrews, LLC to schedule an initial consultation to learn more about our services and how we can assist your upcoming legal process. Reach out to our experienced attorneys today to get started.