Divorcing a spouse who is also a business partner can quickly get complicated. A Sparta, NJ business divorce attorney from our firm can help you navigate this process and protect your business. Whether you plan to liquidate this asset or you want to continue running your company after a divorce is finalized, we can advocate for you and fight for the best possible outcome.
How is a Business Split in a Divorce?
Usually, the first step will be determining whether or not the business is a marital asset. Sometimes a business can belong to one spouse before marriage and the other spouse has no real role in running it. In situations like these, a business will probably be considered separate property belonging to whichever spouse owns the business. If a spouse was an active partner in a business, then it is likely to be considered marital property.
Even if your spouse did not play a huge role in the day-to-day operations of your business, they can still be considered a valuable partner by the court. Maybe the business grew because you were able to focus all of your energy on it, and you were only able to do that because your spouse took care of the home and your children. Your spouse contributed to the growth of your business and could be entitled to some of the value that they helped create.
If the business is considered a marital asset, it needs to be distributed equitably along with the rest of the marital property. This means that your business will need to be evaluated and valued to see how much it is worth. Then you and your spouse can figure out the best way to deal with the business going forward.
Can I Continue to Run the Company With or Without My Business Partner After Divorce?
In some cases, it is entirely possible to keep running a business that you and your former spouse once shared after a divorce is complete. This can happen when:
- One spouse continues to run the business and the other is bought out
- A phased buyout of one spouse’s stake proceeds gradually
- One spouse steps back, keeping their stake in the business while becoming a “silent” partner
Sometimes two former spouses can put personal matters aside and keep running a business together. Selling the business is also an option. It is usually wise to look at current market conditions and the state of the company before committing to a sale though.
Schedule Your Consultation With an Experienced Divorce Lawyer
You do not want to risk your own financial well-being or the status of your business in a divorce. Contact Paris P. Eliades Law Firm, LLC and talk to an attorney who has experience handling divorces between business partners. We are ready to answer your questions and stand up for your rights.