Last Updated on: 16th March 2023, 02:17 pm

DIVORCING A BUSINESS OWNER? PROTECT YOUR FINANCIAL LIVELIHOOD WITH THE HELP OF SKILLED DIVORCE LAWYERS IN SOUTH JERSEY

As a spouse of a business owner going through a divorce, you may find yourself overwhelmed with the legal complexities involved. You want to make sure that your family’s financial livelihood remains intact, while ensuring that the business is properly appraised and divided. Fortunately, the experienced divorce lawyers at Spodek Law Group, based in Cherry Hill, NJ, are equipped to handle all the complicated aspects of divorce, from child custody matters to dividing the assets of a business. Our lawyers have years of hands-on experience and will make sure all business-related aspects are appropriately handled.

IS THE BUSINESS MARITAL OR SEPARATE PROPERTY?

One of the initial concerns when a divorce involves a business in NJ is whether the business itself is considered marital or separate property. Marital property includes assets and property acquired during the marriage, such as money in savings accounts, your home, your vehicles, and a business. In New Jersey, marital property is subject to equitable distribution during a divorce. This means that you may receive some equitable interest in the company or a portion of the proceeds from the business’ sale. On the other hand, separate property typically includes assets acquired before your marriage or certain property that was acquired during the marriage, such as an inheritance. If your spouse started the business before you were married, it may be considered separate property. However, even a previously owned business could have some aspects that are equitably distributable, depending on the circumstances. The team at Spodek Law Group understands the complex nature of family law and will ensure that your rights and financial interests are protected.

VALUING YOUR SPOUSE’S NEW JERSEY BUSINESS DURING DIVORCE

Whether the business is marital or separate property, the company still must be accurately valued during the divorce process. This is a major challenge for many couples. The skilled team at Spodek Law Group, led by Attorney Todd Spodek, knows the laws when it comes to business asset valuation and equitable distribution between divorcing spouses. Since there is no precise formula when determining a business’ value in New Jersey, it’s extremely important that you choose a lawyer who is fully knowledgeable about the factors commonly taken into account by a court. Attorney Todd Spodek will explain how the following issues may impact how the business will be valued and subsequently divided between you and your soon-to-be-ex:

• Closely held business
• Income or capitalized method
• Market method
• Cost approach method
• Fair value

Don’t risk getting less than you deserve. Contact the team at Spodek Law Group today for a consultation. We will leave no stone unturned when your divorce involves a New Jersey business.

ACCOUNTING FOR AND PROTECTING ALL TYPES OF BUSINESS ASSETS

When representing a business owner in a divorce, much of the work for an attorney revolves around making sense of portfolios of business assets and liabilities. This process requires a lawyer to be very detail-oriented and thorough — traits that our attorneys possess. We identify and value all relevant property, including inventory, trade secrets and intellectual property, business goodwill, appreciation, commercial real estate, business loans and debts.

WORKING WITH RESPECTED EXPERTS

Over the years, Spodek Law Group has built relationships with reliable financial experts whose skills and opinions are valuable in business owner divorce cases. Our network includes actuaries, business valuation experts, and tax specialists who help us calculate a company’s real net worth and then create plans to ensure its continued viability post-divorce.

Divorcing as a business owner is a grueling and emotional journey. It’s even more complicated when the financial stakes are high. As a couple who jointly owns a business, the process of dividing assets can be complicated and requires legal expertise. Don’t go through this alone – seek the guidance of a skilled attorney who can protect your rights and interests.

Initial Impact of Divorce on Business Owners

When couples start a business together, it’s crucial to consider their future financial and marital status. If they don’t take steps to safeguard the business in the event of a divorce, their business can be severely affected. The divorce process is typically long and draining, and can take a toll on the business as the owners’ focus wanes. In some cases, one spouse may have to pay financial support to the other, making the process even more daunting.

Effects of a Settlement

The primary challenge in a divorce between business-owning spouses in New Jersey is the process of valuing the business. A divorce settlement agreement will determine how much one party will pay the other to keep it or how the business will continue to operate jointly. The most significant impact of a divorce on a business is usually derived from the settlement agreement. The value of the business is not usually liquidated or sold, but rather, it’s assessed based on its gross revenue, tax implications, cash flow, and goodwill. The non-business owning spouse will then be entitled to a percentage of that value, unless the couple agrees to operate it together post-divorce. This can mean that the main business owner has to come up with a certain sum of money to buy out their ex-spouse’s interest, affecting their income and their ability to put money back into their business or reinvest.

Steps to Prepare for a Divorce

In New Jersey, business owners can prepare for a potential divorce by keeping accurate records, staying organized, and having their tax returns up to date. During a divorce, the business undergoes forensic evaluation, which could reveal any instances of wrongdoing. It’s important to keep the business matters as legitimate, straightforward, and organized as possible from the beginning, which could prove to be incredibly beneficial in the long run. Additionally, business owners whose spouse is their partner should be fully involved in the finances, banking, and daily operations of their business, instead of relying on someone else. Talk to the business’s accountant for help if you need it.

Dividing Shareholder Partnerships

If a litigant in a New Jersey divorce doesn’t own 100% of their business, it’s essential that they prove their share with the help of an attorney at the start of the legal proceedings. While the entirety of the business is valued, the amount that the non-business owner spouse would be entitled to is only a percentage of the spouse’s share of that business. To substantiate and show what that share is, they must produce a shareholder agreement with a partnership LLC agreement or a buy-sell agreement. It’s also important to provide the documents that detail a buy-sell agreement.

A New Jersey Attorney Can Guide a Business Owner Through Their Divorce

If you’re a business owner and considering a divorce, you need the guidance of a skilled attorney. Financial planners cannot represent you in this process, and you need a legal expert to help you navigate the complexities of your divorce case. A qualified legal counsel, such as those at Spodek Law Group, can provide the experience and knowledge necessary to protect your assets and guide you through the divorce process. Don’t go through this alone – contact us today for a confidential consultation and learn more about your options.