Divorce With a New York Business | What You Need to Know
For many people, their business is their life’s work. You may have put years of blood, sweat, and tears into building your business from the ground up. As a result, you may be nervous about what will happen to your business in the event of a divorce. Read on to learn more about how you can protect your business during a divorce in New York.
How are assets divided in New York?
The first thing to understand is that New York uses the process of equitable division in order to divide assets between spouses. This means that your assets will be split fairly, rather than evenly. For example, your assets may not be split 50/50. In order to make a decision about how to divide your assets equitably, the court will consider some of the following factors:
- Whether a spouse contributed to the education, training, or earning power of another spouse
- The value of your property
- You and your spouse’s earning potential
- Debts and liabilities
- You and your spouse’s age
- Your property, as well as income
- Tax consequences
- Property settlement agreements
- Your marital standard of living
- Whether you will need help covering the cost of reasonably foreseeable medical or educational costs for a child
- Whether you or your spouse deferred career goals for the benefit of your marriage
- You and your spouse’s health
- Your respective economic circumstances once your assets are divided
- The length of your marriage
How do you valuate a business?
In order to divide your assets fairly, the court must know their true values. In order to determine the value of a business, the court may bring in financial experts. It is important to know that if any assets are hidden, either on purpose or by accident, an IRS investigation may be prompted, leading to serious legal trouble. To avoid any mishaps, it is important to work with an experienced attorney.
Can I protect my business during a divorce?
The best way to avoid splitting your business in the event of a divorce is with a prenuptial agreement. A prenup is a legal document that declares how a couple’s assets will be divided in the event that their marriage comes to an end. For example, you can put arrangements regarding your business in your prenuptial agreement so that any division or allocation is already settled. However, it is important to ensure that your prenuptial agreement is valid. If found invalid, your business can be divided through the process of equitable division. To make sure you have a valid prenup, work with a family law attorney.
If you have any questions or concerns about getting divorced as a business owner, contact our firm today.
Contact Our Rockland County Firm
If you are faced with a family law matter in Rockland County, contact The Law Office of Peter L. Jameson, PLLC today to schedule a consultation.