Dividing a Business in a Divorce

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Dividing a Business in a Divorce

If you or your ex owns a business, you may be wondering how a business is divided in divorce. Dividing a business in a divorce is a complex matter and one that requires an experienced matrimonial attorney. When there is a business that is a marital asset, the following options are available:

  • The business is sold
  • The business is retained by one spouse
  • The business is jointly owned after divorce

Selling the Business

If the business is sold, the couple splits the proceeds according to the terms of the property division they create in a settlement or which is created by the court.

Ownership by One Spouse

This is the most common scenario. Often there is one spouse who was most involved in the business and wishes to continue to own and run the business. The value of the business is calculated and included in the total pot of assets the couple owns. When the assets are divided the spouse who will not continue with the business is awarded other assets as his or her portion of the business’s value. It is also possible to create an ongoing payment process, based on future profits.

Joint Ownership

It is possible to continue to own and run a business together after a divorce, but it is difficult to do. Some couples can maintain a working relationship even though their personal relationship has ended. In general, it is problematic and it is advisable that some sort of tie-breaker decision-making process is created so that if you disagree about business decisions in the future the company will not be deadlocked.

 

Talk to DeTorres & DeGeorge about property settlement and division and valuation of businesses in a divorce.

Financial Divorce Guide
About DeTorres and DeGeorge Family Law

DeTorres and DeGeorge Family Law is a New Jersey based family law firm that has been helping New Jersey residents achieve the best possible results in their divorce for nearly 30 years. The DeTorres and DeGeorge Family Law team is always ready to fight for their clients’ rights – determined to help New Jersey families overcome legal challenges from start to finish. Our legal team, with over 65 years of combined experience, provides expert guidance on all family law and divorce-related matters, including custody and parenting time, alimony and child support, equitable distribution of assets, premarital agreements, post-divorce issues, executive compensation distribution, divorces for business owners, and divorce mediation. The firm has been recognized for its dedication and expertise in the industry by multiple local and national organizations, including Super Lawyers, Law Firm 500, and the American Institute of Family Law Attorneys. Rosanne DeTorres, Managing Partner, is one of 150 lawyers certified as a matrimonial law attorney.

Rosanne S. DeTorres
Ms. DeTorres is the managing partner and co-founder of DeTorres & DeGeorge Family Law. She is also only one of 150 attorneys in the State of NJ that is certified by the NJ Supreme Court as a Matrimonial Law Attorney. Ms. DeTorres graduated...
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