Going through a divorce is a very emotional and difficult matter for everyone involved. When one or both individuals going through divorce own a business, the matter becomes even more complicated. There may be situations in which a business can be considered marital property, even if one of the spouses believes they are the primary owner. It is important to note that anything that is considered marital property is subject to the equitable distribution process in divorce. This can put the business in a very vulnerable position and even have a negative impact on the business’s future.
First, the court will have to assign a value to the business. This may require a forensic accountant to come in and assess the business. It is important to note that forensic accountants will look very deeply into all of the financial aspects of a business. Therefore, it is crucial that the business owner provides only accurate information. If there are discrepancies about financial matters, the forensic accountants may report such information to the Internal Revenue Service, which can result in additional legal issues.
There are several options for couples to save their business even if they get divorced. These include:
- creating a shareholder agreement that shows each party’s interest in the business
- the couple may have created a contract before they were married in the form of a prenuptial agreement
If you are a business owner facing divorce, contact our firm today.
Ross and Calandrillo, LLC is a full-service divorce, family, and real estate law firm in Mountainside, New Jersey. For strong legal representation in all of your family law matters, contact Ross and Calandrillo, LLC to schedule a consultation.