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Divorce is often complicated, but if either (or both) spouses own a business, the divorce process becomes even more complex. Valuing a company accurately is one of the most important parts of dividing marital assets. A mistake in valuation can lead to an unfair outcome that affects your financial future, so it is essential to understand how business valuations during a Hackensack divorce work.
At the O’Cathain Law Group Family Law Department, our family law attorneys have experience handling high-asset divorces involving private businesses, medical practices, law firms, and investment partnerships. We work with a financial team of forensic accountants to uncover the true value of a business during a divorce and help our clients receive a fair and accurate share of marital assets.
In a high-net-worth divorce, a business can be a valuable marital asset. Determining an accurate value of your business is critical because New Jersey follows the principle of equitable distribution, which means that property is not always divided 50/50. Property must be divided fairly, with each party’s role and contribution taken into consideration.
Valuing a business in divorce cases in Hackensack involves more than reviewing tax returns. Courts may consider revenue, market conditions, goodwill, and future earning potential, and in some cases, part of the business may not be marital property. For example, if one spouse started a business before marriage, but the business grew during the marriage, the increase in value that happened while they were married may be subject to equitable distribution.. At O’Cathain Law Group Family Law Department, we work with forensic accountants, valuation experts, and financial analysts to evaluate and report every detail.
New Jersey courts allow different methods of valuing a business depending on its size, structure, and purpose. These may include:
Courts will also consider whether the business is a sole proprietorship or a partnership, as well as the level of involvement each spouse has in its operation. When dealing with business valuations in a marriage break-up, the court in Hackensack may consider whether a buyout is reasonable or if the business should be sold and the proceeds divided. Our divorce attorneys at O’Cathain Law Group Family Law Department together with forensic accountants help you understand which valuation method is appropriate and assist you in negotiating a resolution that supports your financial security.
One spouse may try to hide assets or undervalue the business to reduce the payout. This is why it is important to have a team of lawyers and accountants that can help you uncover hidden income, track business expenses, and challenge questionable financial practices. When handling divorce cases that involve valuing a business in Hackensack, the team reviews ownership records, compensation structures, and any attempts to transfer or delay income.
We advocate for solutions that are fair and reflect the true financial picture. Whether you are a business owner or the spouse of one, we can help protect your rights and your financial future.
Business valuations during a Hackensack divorce can be a high-conflict issue. They require expert analysis and strategic negotiation. At O’Cathain Law Group Family Law Department, we have the experience, resources and connections to guide you through this process.
Our expertise as divorce lawyers allows us to help you get a fair share of assets during a divorce. Contact us today to schedule a confidential consultation with our team of skilled divorce lawyers and learn how we can help you Move Forward.