Divorce is a complex matter on its own, but when one or both spouses are business owners, it gets even more complicated. Although neither party wants the divorce to have a negative impact on the business, it is important to be aware that some or all of a business may be considered marital property in the state of New York. When a business is established as marital property, it is subject to equitable distribution, which can have a major effect on its future. If you are getting a divorce and a business is marital property, it is important to obtain strong legal representation from an attorney who can fight for your interests. A Rockland County business valuation attorney at The Law Office of Peter L. Jameson, PLLC has what it takes to protect your rights in a divorce. If you are a business owner or the spouse of one, contact our firm today for experienced legal guidance when you need it most.
When it comes time to divide property in a divorce, the court needs to determine which property is marital and which is exempt from equitable distribution. This is a complicated matter. Equitable distribution is the principle of dividing assets fairly and justly. In these terms, fairly does not always mean equally but can constitute a range of percentages, depending on many factors.
When a business is subject to equitable distribution, it must have a monetary value assigned by the court. Assigning value to a business is no easy task and may require the watchful eye of a forensic accountant. Valuation is a somewhat subjective process and two forensic accountants can come to different conclusions. This process is invasive and can lead to serious legal problems if the court was to find anything of interest to the IRS or other government agency.
When a business owner or spouse of one faces divorce, it is essential to take measures to protect oneself. The Law Office of Peter L. Jameson, PLLC has the experience necessary to assess one’s situation and fight for the future of a business. The options for protection rely heavily on the ownership arrangement of the business. If spouses jointly own the business, they may want to consider executing a shareholder agreement. This can protect the business from the scrutiny of the court and a forensic accountant while simultaneously allowing both parties to determine ownership. The other way that this can be accomplished is through a prenuptial or postnuptial agreement Having an established understanding of ownership can make the divorce process much easier for all involved.
When business owners or their spouses face divorce, it is important to take steps to protect the company. If you are a business owner or the spouse of one, it is imperative to discuss your situation with an effective attorney. Our firm understands that you don’t want the business to be impacted. The Law Office of Peter L. Jameson, PLLC recognizes the need to protect the interests of clients. Contact The Law Office of Peter L. Jameson, PLLC to schedule a consultation today.