Ending a marriage is never easy. However, when both you and your spouse share the same risk-taking qualities as business owners, your property division determination may turn even more complex and time-consuming.
In this blog, we will explore how shared property like a family business is divided in a New Jersey divorce.
How are marital assets divided in New Jersey?
Under New Jersey divorce law, all assets and debts acquired by either you or your spouse during your marriage is marital property. Using the equitable distribution principle, the court will divide your marital property fairly, but not necessarily equally.
Six common forms of marital property include:
- Real estate property
- Personal property
- Earned incomes
- Joint bank accounts
- Retirement accounts
- Business properties
Since you and your spouse built and grew your business together, this property is marital property will be subject to property division.
How does the court proceed with business property division?
To divide your family business equitably, you and your spouse will need to hire professionals that can appraise the value of your business fairly. These financial experts may include certified public accountants, accredited senior appraisers and/or business valuation analysts.
By seeking their valuable assistance on this matter, the court can establish the real market value of your family business.
What happens after the business appraisal?
After the appraisal, you and your spouse can settle the terms of your business division using one of three methods:
- Buyout: One of you will purchase the other’s business shares and become the sole owner of the business.
- Co-ownership: You will both keep the property and continue to run it as business partners.
- Sale of business: You will sell the business together and divide the profits equally.
With your family’s support and the guidance of legal counsel, you can protect your rights to fair property division and go through your divorce proceedings with familiarity of the process and legal timeline.