If you own a business, you understand that there is a considerable amount of work, dedication, and consideration that goes into operations. As such, you likely take great pride in your company, building it from the ground up to get it where it is today. However, that work can be jeopardized in the event you and your spouse file for divorce. Unfortunately, depending on your circumstances, your business can be at risk during your divorce. That’s why the following blog explores what you should know about these matters during divorce and why working with a Nassau County high net worth divorce lawyer is imperative during these complicated legal times.
How Will a Business Be Handled During a Divorce?
It’s important to first and foremost determine whether or not your business is considered marital property. In New York, only assets that are deemed marital property are subject to division during your divorce. As such, if you and your spouse both own and benefit from this property, it will be considered a joint asset. Additionally, if the business is solely in your name but you co-mingled it with marital assets, it will be considered marital property.
If your company is marital property, there are a few options you can consider. The first is to continue running the business as usual, which is generally only viable if you and your spouse are on amicable terms. The next option is to sell the company and split the shares between you and your spouse. Finally, you may be able to buy out your spouse’s share, giving you full ownership over the company while relinquishing other assets in exchange.
Are There Any Steps I Can Take to Protect This Asset?
When you are getting divorced, the best thing you can do to protect your business is connect with an experienced attorney who can help you negotiate for the best possible outcome. Unfortunately, trying to navigate these matters on your own can have unfavorable outcomes.
If you are not yet married, you should strongly consider establishing a prenuptial agreement to protect your company in the event you and your future spouse file for divorce. This allows you to determine how certain assets, including your business, are handled in the event of a divorce. If you are currently married and recently established a business, creating a postnuptial agreement can help ease any concerns regarding the future of your company in the event of a divorce.
As you can see, there are many outcomes of what can happen to your business. If you are going through a divorce, connecting with the team at Barrows Levy PLLC is critical to fighting for the best possible outcome for your circumstances. When you need help, our firm is here. Connect with us today to discuss the circumstances of your case with a member of our team.
