Atlantic County Business Owner Divorce Lawyer

One of the most difficult issues to settle during any divorce or dissolution of a legal relationship process is that of the equitable distribution of marital assets and debt. This process becomes even more complex when family-owned businesses, small businesses, or business holdings are involved. Unless there is an existing prenuptial agreement or marital agreement in place that specifically addresses the business in question, marital property laws are such that most businesses and business interests will typically be subject to equitable distribution during a divorce. At the Law Office of Stephanie Albrecht-Pedrick, LLC, we are committed to helping you through each step of your divorce. Contact a skilled Atlantic County business owner divorce lawyer from our firm today.

Is a Business Considered Marital Property in New Jersey?

One of the most common questions people have when going through a divorce is whether a business they own will be considered marital property and therefore subject to equitable distribution. Unfortunately, there is no simple answer to this question, as every divorce is unique, and the circumstances surrounding the ownership and operation of a business can vary greatly from one case to another.

In general, a business that was started, purchased, or acquired during the marriage will often be considered marital property, at least to some extent. However, even when a business was established before the marriage, that does not necessarily mean it will be considered entirely separate property. In many situations, a business may increase in value during the course of a marriage, and if marital funds, marital efforts, or the contributions of either spouse played a role in that growth, a portion of the business’s increased value may be subject to equitable distribution.

There are a number of factors which may be considered when determining whether a business, or a portion of a business, is marital property, including:

• When the business was established or acquired
• Whether marital funds were invested into the business
• The role each spouse played in the business’s growth and success
• Whether business income was used to support the family during the marriage
• Any existing prenuptial or postnuptial agreements
• The increase in value of the business during the marriage

Valuing a Business During a Divorce

Before any business or business interests can be divided during a divorce, they will first need to be accurately valued.

When it comes to something like a family home, the valuation process can be relatively straightforward. When it comes to a business, however, this process is often anything but.

Determining the value of a business is often one of the most heavily contested aspects of any divorce involving business ownership. Unlike many other marital assets, businesses can have significant future earning potential, complex ownership structures, and intangible assets which may be difficult to quantify. Because of this, it is critical that any business or business interest be thoroughly evaluated before negotiations regarding the division of assets begin.

What Factors Affect the Value of a Business?

The valuation of a business involves much more than simply looking at annual revenue or reviewing a company’s bank account statements. In reality, there are many different factors which can impact the value of a business, and accurately accounting for all of these factors is critical when negotiating a fair and reasonable division of assets agreement. Some of the factors commonly considered during the valuation process are as follows:

• The business’s current assets and liabilities
• Historical revenue and profitability
• Future earning potential
• Existing contracts and client relationships
• Equipment, inventory, and real property owned by the business
• Outstanding debts and financial obligations
• Industry conditions and market trends
• The business’s reputation and goodwill

Professionals Commonly Involved in Business Valuation

Our firm regularly consults with financial experts such as:

• Certified Public Accountants (CPAs)
• Forensic accountants
• Investment analysts
• Property appraisers

These professionals help us get the most accurate picture of:

• Your business’s financial state
• Its worth
• Its potential for future growth

By having the best possible understanding of a business’s financial state, we can more effectively negotiate the divorce’s division of assets agreement in a way that takes the true value of any business or business ownership stake you or your spouse may have into account.

Common Options for Dividing a Business

Once a business has been valued and determined to be subject to equitable distribution, there are several ways it may ultimately be handled during the divorce process. The most appropriate option will depend on the nature of the business, the goals of the parties involved, and the overall division of marital assets. Some potential options are as follows:

One Spouse Retains the Business

A business owner may retain complete ownership and control of his or her business after a divorce in exchange for:

• A monetary payment or payment schedule
• Assets of relatively equal value, like a home or property

The Business Is Divided

A business can be divided into separate entities, with each party in the divorce assuming ownership over individual parts of the business.

The Business Is Sold

The couple may also decide to sell the business and divide the profits.

Continued Joint Ownership

Finally, it is also an option for a divorcing couple to still jointly own and run a family business after divorce, although this arrangement poses obvious complications.

Determining the Best Arrangement

If you have a specific arrangement or goal in mind for the division of a business or ownership stake, speak with our attorneys about your options for securing such a settlement.

If you are unsure what the best arrangement may be in terms of the division of a business, our attorneys and financial consultants can provide you with a clear picture of:

• Your options
• What the outcome may be in each scenario
• How to secure the settlement that makes the most sense for you

Contact Our Business Owner Divorce Lawyer in Atlantic County, NJ Today

At the Law Office of Stephanie Albrecht-Pedrick, LLC, our attorneys have extensive experience helping clients across Atlantic County to successfully and favorably resolve their divorce, and their division of assets agreement.

We understand just how important your financial future is to you, and by practicing exclusively family and divorce law, we are ready to provide you with the highly effective, financially savvy, and experienced legal representation you need and deserve when it comes to your divorce.

To speak with our firm today in a confidential consultation regarding your divorce, and your concerns and potential options for the division of a family business or business interest, contact a business owner divorce lawyer today.