Equitable Division of Business Assets During Divorce
During the course of divorce proceedings, all assets or debts accrued during the marriage must be divided. Business assets, owned businesses, and investments are no exception. However, owned business property division has the potential to be quite complicated when considering the many variables involved. A qualified and experienced divorce attorney will be able to help couples navigate the equitable distribution process when it comes to family owned businesses or business holdings.
Today, our business division during divorce lawyer will define equitable distribution, discuss how business division can be different, and touch on the process of valuating owned businesses during divorce.
Union County, NJ Division of Assets Attorney Discusses Dividing Owned Businesses
New Jersey is considered an “equitable distribution” state. For divorcing couples, this means that business and all other marital assets must be divided fairly, not necessarily evenly. Your Union County division of assets attorney will likely help you through this process using several steps, including:
- Determining whether or not the owned business is marital property. Simply owning a business asset during a marriage does not necessarily mean is it eligible for division. Factors such as when the business asset was acquired, appreciation during the marriage, and investment by one or both spouses during marriage may play a role
- Determining the degree to which each spouse is entitled to the business asset. This goes back to equitable distribution. The process of weighing each spouse’s right to a business asset can be quite complex
- Valuing your business. More on this in the section below
- Coming to an agreement to divide the business asset. Finally, you will come to terms to divide the business asset(s) as part of your divorce settlement agreement
Plainfield Business Division During Divorce Lawyer Valuates Business Assets
Successfully and equitably distributing a business asset requires a valid and reasonable valuation of the business property. In many cases, this is quite a difficult proposition as financial forecasting, industry trends, cash flow, and many other factors can make a significant difference in the overall value. Your Plainfield business division during divorce lawyer will work closely with you and your family to fairly assess your business property.
There are a number of high level methods which are commonly used to valuate a business asset. For example, the market value method compares your business to other similar businesses which have recently been sold. The sale price is then used as a basis of comparison to determine a fair value of your business.
However, the best way to be sure that your business property is being accurately valued is to work with an industry expert. Prepared and experienced attorneys will likely have working relationships with industry experts who can be called in to offer their expert testimony. In this way, the business will be valued using the latest information, a clear understanding of industry trends, and the associated assets, liabilities, and so forth of your owned business.
Contact a Linden Business Property Division Divorce Attorney Today
Business property division during divorce attorney Edward S. Cooper has extensive experience serving Union County communities such as Elizabeth, Plainfield, Linden, Westfield, Union, Scotch Plains, and across Northern New Jersey. Our firm understands that business assets are often more than dollars and cents; they represent a lifetime’s worth of hard work and dedication. Attorney Cooper takes pride in working closely with his clients to reach their desired outcome within divorce and family law cases. If you are looking for a highly qualified and experienced attorney who will value your input throughout the legal process, look no further.
To discuss your divorce, your business asset division, or any other divorce legal concern, please contact us online or through our Linden, NJ offices by calling (908) 481-4625 today for a confidential consultation.