Going through a divorce with a business is far from easy. If you are in this situation, you will need an experienced New York divorce attorney on your side. At the Jameson Law Firm, our attorneys are committed to ensuring that you and your best interests are a priority.
Is my business subject to equitable distribution in my divorce?
Equitable distribution is a method that courts use to divide and distribute property and debt related to marital property. Equitable distribution means “fair” division, not “equal” division. Before a court is capable of dividing property, marital property and separate property must be defined. In most cases, marital property is subject to equitable distribution. A business is usually characterized under marital property. A court will consider the value of the business and make their equitable distribution determinations based on that and other essential factors.
What is the difference between marital or separate property?
Marital property is divided equitably. On the other hand, separate property is not usually divided at all in a divorce. Separate property includes the following:
- Inherited assets
- Assets obtained prior to marriage
- Gifted assets
- Assets that are designated as separate in a written agreement
How is the value of my business determined?
The court must go through a valuation process to determine the company’s value. Usually, in order to determine the value of the business, several experts will need to investigate the finances of the business. If any inconsistencies are found, the Internal Revenue Services may get involved. If this happens, there can be severe legal and financial penalties that can delay the divorce process and make it even more complex.
How can I make sure that my business is protected during my divorce?
Business owners that are going through a divorce are often overwhelmed because they do not know what will happen with their business. Luckily, there are many options. First, if the couple has previously agreed upon shared ownership of the business, a shareholder agreement can be put in place to assign value to each person’s interest in the company. If the couple decides to divorce, the shareholder agreement can make the process easier for both parties involved. In specific circumstances, those who have their business before they are married might consider a prenuptial agreement to avoid the business valuation process completely.
Contact our Firm
The Law Office of Peter L. Jameson, PLLC understands the harsh implications of relocation can have on a child and his or her parents. When you have a contested relocation matter, it is important to have an experienced attorney to represent you in court. If you are faced with a relocation matter in Rockland County, contact The Law Office of Peter L. Jameson, PLLC today to schedule a consultation.