Dividing the Value of a Business During a Hackensack High-Asset Divorce

If you’re reading this there’s a fair chance, you’re either getting divorced or thinking of getting divorced (or, perhaps, are already separated). Many questions, issues, and thoughts may be swirling around in your mind, and yet if you’re a business owner (big or small, local or global) one question may loom large:

How is my divorce going to impact my business?

In New Jersey, a business is often— though not always— deemed a marital asset. One instance in which a business is always deemed a marital asset is when it’s co-owned by a married couple; a Yahoo!Finance article estimates that over 10% of all businesses in America are in fact co-owned by married couples. Like other marital properties, the business is subject to equitable distribution in a New Jersey divorce.

How Do You Divide the Value of a Business During a Hackensack High-Asset Divorce?

Before we answer that, the first thing you want to do is immediately consult with a dedicated and experienced O’Cathain Law Group Family Law Department family lawyer. Our team has represented literally thousands of business owners, from true mom-and-pop stores to global businesses, and your dedicated legal team will work with you to protect your business. Call (848) 356-4442 or fill out the form at this bottom of the site immediately.

Factors the Court will consider in determining the value of a business

• Did you or your spouse start the business before or after you got married?
• How have the profits been spent, invested, divided or such?
• How was the business initially funded?
• What documentation and financial agreements for the business exist?
• What’s the financial history of the business?
• Does the business have debt, loans or any other forms of negative assets?

Your legal team will utilize the services of a qualified and dedicated forensic accountant to determine the value of the business, as will the opposing party. If the value of the business is very far apart as determined by these forensic accountants, the court may be compelled to hire their own forensic accountant to render their own value. Some intangible factors— such as sweat equity or the relevant skills for the business— may also come into play.

What will happen to my business during the divorce?

• You may buy your spouse out of the business, if you have the assets to do so.
• Your business may be sold, with the profits being distributed equitably.
• You may reach a settlement agreement with the opposing party that protects your interest in your business.
• Despite the divorce, you may decide to work with your soon-to-be-ex-spouse as a co-owner in the business, thus letting the divorce affect your personal life but not your professional life.

If you can’t afford to buy your spouse’s interest in the business, you may, however, be able to trade your share of the value of other marital assets, or you may in fact be able to enter an installment payment plan with your spouse.

One thing is for certain: we’ll never recommend a course of action unless we believe it’s the best decision for you and your business. You built your business, and divorce impacts enough of your life. O’Cathain Law Group Family Law Department will fight for you and your business, and we’ll help you Move Forward— in business and in life.