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How will your divorce affect you as a business owner?

On Behalf of | Jul 15, 2021 | Divorce

Your divorce will impact virtually every area of your life. From your finances to where you live, you will find that changes are inevitable. You may have concerns about how these changes will affect your future financial interests, particularly if you own a small business. Protecting your company could be one of your primary goals as you pursue a fair property division order.

There are specific things you can do to shield your interests and ensure the long-term success of your business. It is important to know how New Jersey property division laws could affect you and whether it is best to seek a negotiated out-of-court settlement. When you understand your rights, you will be in a better position to fight for a final order that safeguards the small business you worked so hard to build.

What happens to marital property

Marital property is anything accumulated, earned, bought or collected over the course of the marriage. This type of property is subject to equitable distribution in a divorce, and it is possible this includes your business or business-related assets. Some of the following facts may be helpful to you as a business owner facing a divorce:

  • Your business may be marital property if you and the other spouse are co-owners of the company.
  • The business will likely be marital property if you started it after you married. It could be separate property if you started it prior to marriage.
  • It could be marital property if the other spouse contributed to the success of the business in various ways, even if you founded the company before marriage.

Some business owners find it prudent to have a prenuptial agreement before they marry or to draft a postnuptial agreement drafted later. If you do not have either, you will find it beneficial to develop a strategy that will allow you to preserve your business interests and lay the foundation for a strong future.

Set emotions aside

When navigating a complex divorce, you may find it beneficial to set your emotions aside. How you feel may not indicate what will truly be best for you and your business long-term. It is prudent to focus on seeking terms that will minimize future complications and allow you to continue operating your business for years to come. Before you make any final decisions, you may want to consider both the immediate and potential long-term impact of that choice.