Your divorce is going to bring inevitable changes to multiple areas of your life, from where you live to how often you see your children. It may also affect your small business. As a New Jersey business owner, you may wonder how your divorce could impact your company and what you can do to shield the future of your operations. When you know what to expect and understand the potential effects you may have to navigate, you will be better prepared to confront these challenges.
You worked hard to build your company, and you may see your divorce as a threat to the longevity of this closely held asset. While changes are possible — even likely — your business may be able to continue to operate successfully for years to come. You will benefit from thinking about the long-term impact of any terms you are considering in your final order.
The protection of your company
The division of marital property is a required part of any divorce. This means you and your spouse will equitably divide all assets you bought, accumulated, or collected over the course of your marriage. You may wonder if your business counts as marital property, and if it does, what this will mean for how you run your company going forward. Major factors in determining whether your divorce is marital property are when you started your company, how much each spouse contributes to the daily operations of the company, and other details specific to your unique situation.
You and your spouse may be able to negotiate the terms of an agreement that fairly address this specific issue in a way that is satisfactory to both parties. However, in the event that this is not possible, you have the right to fight for your preferred outcome in court. Whether it is in negotiations or in litigation, any decisions you make have the potential to impact you for years. It is in your interests to make smart and practical choices that will make sense for your business long-term.
The future is still bright
Dividing a family-run business in a divorce can be complex and emotionally challenging. Due to the sensitive and financially challenging nature of addressing a family business in a divorce, having experienced guidance at every step is prudent. Before you agree to terms or make any choices that will affect your future, you can benefit from giving careful consideration to how it could impact the future of your company.