Dividing a business in a divorce is a complex matter and one that requires an experienced matrimonial attorney. A business is subject to equitable distribution in a divorce, which means that both people in the marriage have an interest in the business. In other words, even if your spouse does not have an ownership interest in the business, he or she may still have an equitable interest in it.

The way that a business is divided in a divorce is very fact sensitive and may trigger the need for a third-party expert to offer an opinion on the value of the business. The total appraisal will take into account not only the value of the business itself, but also the value of any tools, equipment and other assets that may be tied to the company.

The amount of the business that is subject to equitable distribution will depend on the facts of your specific case. Some factors to consider are:

  • Did you or your spouse own the business prior to marriage?
  • Are you open to selling the business to a third party?
  • Do you own the business alone or with additional partners?

In the end, you’re likely to see one of three outcomes. Although most divorcing business owners have no desire to co-manage their company with their ex, one outcome is for both parties to jointly own the business after divorce. Alternatively, it can be retained by one spouse or sold to a third party.

If you are considering a divorce and want to investigate the rights and obligations associated with your business, call us now to schedule an initial consultation with DeTorres & DeGeorge Family Law Attorneys to discuss the specifics of your matter.

For more information, please call us at 908-304-9679.

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