What Happens When Business Owners Get Divorced?
When business owners get divorced, their business can be divided or offset in the divorce if it’s considered marital property. It depends on when and how the business was established, how much it grew during the marriage, and how your spouse may have contributed to that growth.
At Weinberg, Kaplan & Smith P.A., our Marlton, NJ, asset division lawyers can help you stay in control of your business while resolving complex financial and legal issues that come with divorce. You don’t have to choose between protecting your business and moving on with your life. We can help you do both with the right strategy.
What is My Spouse Entitled To?
New Jersey follows equitable distribution rules, which means courts divide property based on what is fair. For instance, if you established your business or grew it significantly during the marriage, your spouse may have a claim to part of its value, even if they weren’t directly involved in running it.
That claim might be based on more than just money. If you used marital income to support your business, or if your spouse took on household responsibilities so you could work longer hours, the court may view that as a contribution to the company’s success. This isn’t uncommon. These disagreements can delay the case, drain resources, and increase tension on both sides.
How is a Business Valued in a Marlton, NJ, Divorce?
Courts typically rely on valuation professionals, typically forensic accountants, to assess a business’s worth. This involves analyzing financial records, tax returns, debts, industry trends, and goodwill. Depending on the type of business, experts may use different approaches, such as asset-based, income-based, or market-based.
For instance, a solo therapist’s practice will be valued differently from that of a franchise restaurant or a software company with intellectual property. While numbers matter, the story behind them is crucial.
Do I Need to Sell?
It depends on your specific situation. In most cases, one spouse keeps the business and compensates the other by giving up a share of another asset, such as equity in the home or part of a retirement account. In other cases, buyouts can be structured over time to avoid a major financial hit upfront.
If you co-own and operate the business together with your spouse, the solution may involve restructuring or selling, depending on whether you can continue working together. Every case is different, but the goal is usually to preserve the long-term viability of the business and continue to profit from it post-divorce.
How a Marlton, NJ, Asset Division Lawyer Helps Business Owners Protect Their Property
Your attorney’s job is to help you protect not just your business, but your future and financial freedom as well. A Marlton, NJ, asset division attorney can:
- Keep operations stable and prevent court orders or discovery demands from disrupting your day-to-day business or scaring off investors, partners, or employees.
- Create practical solutions. Whether it’s crafting a buyout or negotiating a trade-off, your lawyer can help you reach terms that don’t cripple your company’s future.
- Position you for what’s next. Divorce is about ending a marriage and building what comes after. Your lawyer will make sure the outcome doesn’t leave your business exposed or unworkable.
Speak to Our Proactive Marlton, NJ, Asset Division Attorneys
At Weinberg, Kaplan, & Smith P.A., our Marlton, NJ, asset division lawyers can craft a strategy tailored to your business, your goals, and your future. Arrange your case review by calling 856-795-9400 or contact us online.