If you are a business owner in New Jersey, you may be concerned that a potential divorce could undermine your business interests. After all, many people have heard about divorces that led to the sale or dissolution of a business or the loss of a major stake for the founder. In many cases, couples have been involved in the business together during the marriage and either party may be worried about the effects of a divorce on their stake in the enterprise.
Protecting your interests
Business owners can act to prepare for divorce with an eye toward protecting their businesses. Even long after the practical and emotional matters involved in the end of a marriage have been resolved, the financial dissolution may carry long-term consequences. Divorce typically involves some distribution of marital property, income and assets acquired by both spouses during the marriage. New Jersey is an equitable distribution state, so asset division is determined by an agreement between the parties or a judge in family court.
There are several ways to handle a business during property distribution in the divorce, and these may be affected by the level of involvement your spouse has in the company. Both parties may decide to sell the business and distribute the proceeds, but in other cases, the spouse who is more involved in the company may trade other assets in order to acquire their ex’s interest in the firm. When the cash is not available, the buyout may be structured into a form of gradual payments and spousal support.
Seeking advice from a family law attorney
Business owners have unique concerns during a divorce, especially if they want to continue to operate the company for years to come. A family law attorney might provide advice and guidance to help entrepreneurs navigate the process of property division and protect their interests in their businesses.