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What women business owners should know about divorce

On Behalf of | Apr 8, 2021 | Property Distribution

More than 11 million women in the U.S. are business owners. These women employ around 9 million people and bring in over $11 trillion in revenue every year. These are just a few of the reasons that women business owners should be aware of their profits and assets, especially in the event of divorce. If you’re a New Jersey business owner facing a split with your spouse, here are some important things you should know when it comes to property division.

Know when your business started and how it’s funded

It’s important to know if your spouse has partial ownership of your company. If you started your business before you got married, you will likely retain ownership after your divorce. However, if you started the business while you were married and used household money to fund parts of your company, you may have to engage in a property division process. However, if there was no use of marital money to fund your business, the courts may still consider it separate property.

Value your company

It is imperative that you know how much your company is worth. Don’t guess or estimate; request the services of a business appraiser or forensic accountant to give you facts and figures. You may need this information in court to ensure that the property division process is fair.

Be clear about what you want

If your company is considered marital property, you’ll have to be clear about your divorce agreement terms. If you want complete control of the business, it may be best to buy your spouse out of the company. Alternatively, you could allow your ex to remain a partial business owner with or without direct involvement in the business operations.

It’s wise to bring in professionals to help protect your business interests. An experienced family law attorney may provide pertinent information about property division so that you’ll know what to expect in your divorce and how to receive a fair settlement.

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