Can I Lose My Business in a Divorce in New Jersey?

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Can I Lose My Business in a Divorce in New Jersey?

Desk with computer, clipboard and hands with calculatorIf you are a business owner anticipating a divorce in New Jersey, you may be concerned about whether you will lose your business in a divorce. Many people are concerned about divorce and business assets that can lead to splitting up a business in a divorce. A business divorce settlement is an important consideration that is involved in the divorce process to ensure that you protect a business from a divorce.

If you are working through a divorce involving a business, you will need a lawyer to help you with the divorce process. There are many steps that need to be taken when splitting a business in a divorce, and a skilled attorney is necessary to ensure that your interests are protected and your business assets are maintained with as little interruption as possible. 

How Are Businesses Divided Up in New Jersey Divorces?

If you are considering a divorce and you are a business owner, you need to ensure that you have a comprehensive understanding of how your business assets will be treated during the divorce process and what the impact of the divorce will be upon your business after the divorce is finalized. This is helpful information when you are worried that you might lose business in a divorce. Depending upon the structure of the business and the circumstances surrounding your particular business, it will likely be treated as a marital asset subject to equitable distribution.

There are some details that will change the way that your New Jersey business is handled during a divorce. If you have been worried if you will lose business in a divorce, understanding the factors that impact how your business is addressed is a critical step in this process. If your business was started prior to the marriage, or was inherited by you or if you and your spouse have a prenuptial agreement, these are all factors that will determine how your business will be treated during a divorce.

The valuation of your business is necessary in the distribution of a business during a divorce. A fair valuation will be used to help to determine what each spouse is entitled to when the business is distributed. Establishing a value of your business to determine what share may or may not be subject to equitable distribution is a significant part of the divorce process in New Jersey. Often, employing the assistance of a professional to value the business or assist in establishing a fair business value is necessary to develop a fair approach to reaching a settlement of your divorce, or if necessary, to provide to the Court to assist the judge in making a determination that ensures a fair outcome for both parties.

How to Prevent Losing Business in a Divorce

Many people who are concerned about divorce business assets want to know how to stop a spouse from taking the business in a divorce. Depending upon the structure of the business, such as whether your spouse was involved in the business and how your business is maintained,  you may be interested in a situation where you want to try to prevent losing business in a divorce. Some of the questions that you will be asked are whether your spouse contributed to the business financially or otherwise, whether you acquired the business prior to the marriage, what the structure of the business asset is and whether you have business partners.  Your ownership interest in the business will dictate the value that may be subject to distribution.

If you are worried that you will lose business in a divorce, you will need to be able to clearly demonstrate that your spouse did not have an impact on the business or on the development of the business. This can be difficult in some cases, but if you owned the business before your marriage and have detailed documentation about the way it was managed, you may be able to prevent the situation where you lose business in a divorce.

Securing Skilled Legal Counsel in New Jersey is Important

If you are worried that you will lose business in a divorce, you will want to make sure that you have the right legal team to represent you in your divorce case. Divorces can be very contentious surrounding any asset that you share with your spouse, but business assets can often be the source of great angst during a divorce. If you have a business that you are trying to protect during your divorce, you will want to be informed and know that your rights are protected.

Contact us at DeTorres & DeGeorge for skilled guidance during your divorce. If you are splitting a business in divorce, we can offer you the expertise that is necessary to advise you to avoid as much detriment to your business as possible.

 

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