The divorce process is stressful as it is, and if you have a business that you would like to protect, do not hesitate to reach out to our experienced New York divorce attorneys to discuss your options.
Is my business subject to equitable distribution in my divorce?
Courts will use equitable distribution to divide and distribute marital property. It is important to understand that equitable distribution means “fair” division, not “equal” division. Before a court is able to divide property, marital property and separate property must be determined. Only marital property is subject to equitable distribution. In many instances, a business is considered marital property. A court will typically consider the value of the business and make their equitable distribution determinations accordingly.
What is the difference between marital or separate property?
Marital property is typically divided equitably. On the other hand, separate property is not usually divided at all in a divorce. Separate property includes the following:
- Inherited assets
- Assets obtained prior to marriage
- Gifted assets
- Assets that are designated as separate in a written agreement
How is the value of my business determined?
For a property to be equitably distributed, the court must put the business through a valuation process to figure out the company’s value. Usually, in order to determine the value of the business, several experts will need to investigate the finances of the business. If any unexpected differences are found, the Internal Revenue Services may have to intervene. If this happens, there can be serious legal and financial consequences that will add to the complexities of the divorce process.
If you are going through a divorce with a business, do not hesitate to contact our firm today if you would like to discuss the specifics of your case with an experienced New York divorce attorney.
How can I ensure my business is protected during my divorce?
It is expected for business owners to be concerned about their business as they move through the divorce process. Fortunately, there are many options that individuals can take to protect the business. First, if the couple has previously agreed upon joint ownership of the business, a shareholder agreement can be put in place to assign value to each person’s interest in the company. Then, if the parties decide to divorce, the shareholder agreement can make the process easier for both parties involved regarding the distribution of the assets. In specific situations, those who have their business before they are married might consider a prenuptial agreement to avoid the business valuation process completely.
It is in your best interest to reach out to our firm if you have questions or concerns about how you can protect your business during your divorce.
CONTACT OUR FIRM
Matters of divorce and family law should be navigated with the guidance of an experienced attorney. If you need strong legal representation regarding matters of divorce, family law, and estate law, contact the Law Offices of Susan A. Kassel, P.C. to schedule a consultation today.