As you prepare for your divorce, you may begin to worry about your business. As a business owner, your priority is the well-being of your business — especially if you share business interests with your spouse. Our high asset divorce attorneys at DeTommaso Law Group, LLC share how businesses are handled in divorces.
The Determination of General Ownership
While you may be the sole owner of your business on paper, the courts will need to determine ownership of your business for the division of property process. In this determination, the court will decide if it is separate property and solely yours, or if it is marital property.
This determination involves the court looking back at the origins of your business and your marital status at the time. If you were unmarried at the time of the founding, your business would most likely be determined as separate property, but the increase of the business’s valuation over the course of your marriage will be considered marital property.
If you were married to your spouse at the time of the establishment of your business, then your business will most likely be determined as marital property, even if your spouse was not involved in day-to-day business affairs.
After your business ownership is determined, your business will need to undergo a valuation. This valuation will be useful for the equitable distribution of property, both if your business is considered marital property or if the change in valuation over the course of your marriage is considered marital property.
How To Prepare
As you prepare for the division of property process, you should compile important business documents for the court’s use, including the following documents:
- Bank statements,
- Tax returns for the past five years,
- Business information or incorporation documents,
- Any recent valuations from third-party sources, and
- Any other documents that may be necessary to determine the established date of your business, as well as the value of your business.
These documents will most likely be needed during the ownership determination and business valuation steps.
You should also share your desires to retain ownership of your business with your attorney so they can advocate for your wishes. By keeping your attorney informed of what you wish to exit your divorce with, they can properly fight for your best interests during the division of property.
DeTommaso Law Group, LLC Division of Property Attorneys
As you divorce, you need an aggressive advocate by your side. Our attorneys at DeTommaso Law Group, LLC have over 120 years of combined experience and are prepared to advocate for your best interests as you undergo divorce.
Are you preparing for a divorce as a business owner? Schedule a consultation with our team today to learn about how we will aggressively pursue your interests during your divorce by calling (908) 274-3028 or contacting us online.