When going through a divorce, there are a number of considerations you must make, not only regarding your family but also your finances. Unfortunately, because of the many legal implications of divorce, this process can be complex. Something many do not consider is whether they are entitled to a share of their spouse’s business following a divorce. If this reflects your situation, you’ll want to keep reading to learn more and discover how a Nassau County Business valuation lawyer can help you through this process.
When Is a Spouse’s Business Marital Property?
In general, marital property is determined by when the asset was acquired. In most cases, an asset is deemed marital property if obtained or created during the marriage. It could be considered separate property if your spouse had the business before your union. However, if your spouse co-mingled the business with your joint assets, such as taking money from a shared bank account to fund business expenses, it may be deemed marital property, even if they had the company before marriage.
New York follows equitable distribution during a divorce, meaning each party is not entitled to a 50/50 split of assets. Instead, the courts will consider how much each party contributed to the marriage to distribute marital assets fairly instead of evenly.
What Factors Influence if I Will Receive a Portion of the Company?
There are a number of considerations a court will make before awarding a portion of your spouse’s company to you. If it is deemed marital property, there are a number of factors that influence whether or not you will receive a share. This includes whether or not you contributed to the business, how you contributed, whether you put your career goals on hold to help your spouse, and if you performed a bulk of the household duties.
It’s important to note that even if the business is deemed separate property, you may be entitled to some of the appreciation value if you contributed to the business efforts, such as taking care of all home duties so your spouse could focus their attention on the company.
An attorney will be able to help determine the value of the business to help ensure you’re getting a fair share during the distribution process. For example, you may choose to sacrifice the share in the business for an equal value of other assets, like the family home and car.
When you’re going through a divorce, understanding the assets you’re entitled to is vital to protecting your best interest. If your spouse owns a company, ensuring you have a competent attorney ready to assist you is vital to ensuring you’re treated fairly during your divorce. At Barrows Levy, we understand this can be a complex process. As such, we are dedicated to helping you achieve the best possible outcome. Contact us today to learn more about how we can assist you.