Seeking assistance in protecting a business during divorce | Lane & Lane, LLC
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Seeking assistance in protecting a business during divorce

When it comes to the end of a marriage, property division can be a complex process, regardless of the value of assets involved. However, business owners may face additional concerns during divorce, as they may be uncertain how the outcome of the situation will impact the future of the company. Business owners in New Jersey who wish to protect their enterprises throughout divorce may find it beneficial to consult with an experienced attorney for guidance early in the process.

The first step in protecting a business during divorce is to determine whether the company is marital or separate property. A business that is started prior to marriage may retain its separate identity, provided it isn't co-mingled with marital assets in any way. However, should the company increase in value during marriage, the amount of the increase might be considered marital property. In addition, should the other spouse take an active role in the success of the company, he or she may be entitled to a portion thereof during divorce proceedings.

If the other party is entitled to a portion of the company, there are still options that could help an owner retain possession of the business. During negotiations, an owner could agree to buy out the other person's business interests, whether with a lump sum or payments over time. One could also relinquish his or her rights to other assets during proceedings, such as the family home, in exchange for sole ownership of the company.

With a great deal at stake during divorce, business owners may find it advisable to seek guidance prior to entering negotiations. For advice on the options available, an owner could find it helpful to consult with a family law attorney. An attorney in New Jersey can evaluate a client's circumstances and assist him or her in pursuing the most favorable outcome achievable concerning the future of his or her company.

Source: investopedia.com, "4 Ways to Reduce the Impact of Divorce on a Small Business", Shawn Leamon, Accessed on March 27, 2018

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