If you own a business, you’re likely worried about what will happen to it during property division in the event of a divorce. While divorce is never easy, high-net-worth divorces are even more complicated because they involve significant financial holdings. If you’re currently facing a high-net-worth divorce, it is in your best interest to contact a talented Rockland County High Net Worth Divorce Attorney who can help you fight to protect what is rightfully yours during property distribution. Please continue reading to learn how to safeguard your business during a high-net-worth divorce.
What is a high-net-worth divorce?
When the phrase “high-net-worth divorce” comes up, you might assume it refers to a wealthy couple dissolving their marriage, and you would stand correct. However, a high-net-worth divorce typically involves significant financial holding, usually involving couples with a combined net worth of one million dollars or more. It is imperative to note that nowadays, a million dollars doesn’t mean what it used to be. As such, high-net-worth divorces more accurately involve several millions of dollars worth of assets in today’s society.
What steps can I take to safeguard my business during a high-net-worth divorce in New York?
Understandably, having a business that you poured your blood, sweat, and tears into building and making successful on the line during property division can be nerve-wracking. Fortunately, there are several ways that you can protect your business in the event of a divorce. Drafting a marital agreement is one of the best ways to protect your business during a high-net-worth divorce. A prenuptial or postnuptial agreement can help you clarify asset ownership, allowing you to define the property stake of each spouse in the business. This will mitigate the risk of future conflict regarding property division, as you can stipulate how you intend to divide your marital assets in a divorce.
In New York, marital assets, meaning any assets acquired during the marriage, are subject to equitable distribution. For some couples, that could mean a 50/50 split or marital assets. But for others, it could mean an unequal distribution. Therefore, to safeguard your ownership stake, consider creating a prenuptial or postnuptial agreement in case of a divorce.
Even if you didn’t create a marital agreement, you can still protect your business by creating a formal agreement addressing ownership shares and buyouts based on fair value among the owners. You can also turn to a business succession plan in cases involving closely held businesses. A business succession plan can help ensure the long-term stability of your company as you outline potential successors and their roles and responsibilities. Furthermore, you could turn to a collaborative divorce or mediation. Through these alternative dispute resolutions, you can work with an impartial third party who can help you reach a mutually beneficial solution during divorce negotiations regarding the terms that will apply to the termination of your marriage while protecting your business’s interests.
If you’re a high-net-worth individual considering divorce, contact The Law Office of Peter L. Jameson, PLLC, who will fight to safeguard your hard-earned assets. Allow our firm to represent your interests today to maximize your chances of achieving a favorable outcome.