How Can I Protect My Business Through the Divorce Process?
If you are going through a divorce and you share a business with your partner, you will need to retain the services of an experienced New York divorce attorney. At The Pollack Law Firm, P.C., our legal team is equipped with the knowledge and skill required to fight for you and your future. Reach out to us today to discuss the specifics of your case and how we can best help you.
Is my business subject to equitable distribution in my divorce?
Equitable distribution is applied by courts to divide and distribute property and debt the division of marital property. It is important to note that equitable distribution means “fair” division, not “equal” division. Before a court divides property, marital property and separate property must be defined. Only marital property is subject to equitable distribution. In many cases, a business is characterized under marital property. A court will typically consider the value of the business and make their equitable distribution determinations based on that and other outside factors.
What is the difference between marital or separate property?
Marital property is usually divided equitably. On the other hand, separate property is not typically 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?
In order for a property to be equally distributed, the court must go through a valuation process to determine the company’s value. Usually, in order to ascertain the value of the business, several experts will need to investigate the finances of the business. If any discrepancies are found, the Internal Revenue Services may get involved. If this happens, there can be severe legal and financial consequences that can make the divorce process even more complex.
Do not hesitate to contact our firm today if you would like to discuss the specifics of your case with an experienced New York divorce attorney.
How can I ensure my business is protected during my divorce?
It is not uncommon for business owners are to be concerned about what will happen to their business once they get divorced. Luckily, there are many steps that can be taken to protect the business. 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.
If you have questions or concerns about how you can protect your business, it is in your best interest to reach out to our firm today to discuss your options.
Contact our experienced Nassau County firm
The Pollack Law Firm, P.C., rated Nassau County’s “BEST” divorce lawyers and proudly serving clients in Nassau and Suffolk County for more than 22 years, is always available to assist and represent parties in divorce, separation, and all other matrimonial and family law matters. Contact us online or call today to schedule your complimentary case analysis: (516) 342-3575.