Many individuals in New Jersey or elsewhere have put years of planning and work into cultivating a successful business. When the owner of a business is facing a divorce, he or she might have concerns about the impact a similar situation might have on the future of the company. There may be several options to consider during this period that might help one keep the longevity of the company intact.
Even if a person owned the business before marriage, at least a portion of its worth may be considered marital property, especially if it increases in value throughout the relationship. While a prenuptial or postnuptial agreement might be one way to protect a person’s business interests, some may not feel it is important to put such an agreement in place until it is too late. In addition, if these agreements are deemed unfair to one spouse, or are improperly drafted, they may not be upheld during divorce proceedings.
One option for a business owner to consider revolves around negotiations. A person may attempt to relinquish ownership of other assets in exchange for sole possession of the company. Alternatively, an individual could propose an agreement to pay off his or her spouse’s business interests, whether immediately or over a given period.
When a business owner is facing a divorce, and wishes to protect the company he or she worked tirelessly to build, seeking guidance for the road ahead is advisable. Those who face such a stressful and daunting situation could speak with an attorney for advice on the available options and their potential outcomes. A family law attorney in New Jersey can address a client’s concerns and wishes and provide advice on how to pursue the most favorable outcome possible during divorce proceedings.
Source: tgdaily.com, “3 Ways to Protect Your Business from Divorce“, Ian Reading, Accessed on July 25, 2017