If you are getting divorced, you may be wondering what will happen to your business. In order to better understand the impacts of a divorce on a business, read on.
When it comes to a divorce, your assets will be divided between you and your spouse through the process of equitable distribution. This means that your assets may not be split 50/50. Instead, they will be divided in a way that is fair to both parties. In order to determine this, a court will examine 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
Valuating a Business
In order to divide your assets, the court must first know their true value. When it comes to determining 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 ensure that you are submitting the proper documents, you should work with an experienced attorney.
How Can I Protect my Business From Divorce?
You may be wondering how you can avoid splitting your business in the event of a divorce. One of the best ways to do this is by creating a prenuptial agreement. This is a document that declares how your assets will be divided in the event that your marriage comes to an end. If you did not create a prenuptial agreement, you can still create a postnuptial agreement. This is the same document, only created after the wedding, rather than before.
If you have any questions or concerns about what happens to your business in the event of divorce, contact our firm today.
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.