November 15, 2011 – Divorce or dissolution of a civil union does not mean that you have to lose the “family business” that you and your spouse or partner have dedicated time, money and effort building. One or both of the partners may wish to keep the business functioning despite going through a divorce or dissolution. It has become more than just a source of income. It has become part of a family’s way of life.
Even though both parties consider the family business important to their lifestyle, very often the couple will have different ideas about how to continue the divide the business and its assets or liabilities. New Jersey provides for division of property through “equitable distribution”, which does not necessarily mean “equal”, but that the property is divided fairly. In addition to family businesses, equitable distribution applies to other assets acquired by one or both parties during the course of the marriage or civil union. This includes financial assets, personal property, real estate and other businesses owned by one or both spouses or partners. In addition, a premarital asset may be subject to equitable distribution if it was acquired “in contemplation of marriage”.
The experienced South Jersey divorce attorneys of the law firm of Richard C. Klein, Esq., have the knowledge and expertise to guide you through an equitable settlement concerning your family business, especially if there is no prenuptial agreement in place. Richard C. Klein, Esq., and his team of Cherry Hill equitable distribution lawyers will protect your best interest and preserve your financial well being by keeping the focus on the value and integrity of the business. This is achieved by completing a thorough business valuation which is crucial in reaching a fair agreement. A business valuation includes not only the business’s assets and liabilities, but past earnings and future projections so that the “true value” of the business is calculated. Once an accurate valuation of the business is determined, the assets and earnings accumulated during the marriage or civil union can be equitably distributed pursuant to a settlement agreement between the parties.
When approving a settlement agreement and the proposed division of marital assets, or if an agreement cannot be reached between the parties, the New Jersey divorce courts consider the following factors: the duration of the marriage or civil union; age, physical and emotional health of the parties; income and property brought to the marriage by each party; written agreements made by the parties; and the financial conditions of each party at the time the division of property becomes effective. The division of marital assets that involves the equitable distribution of a family business is complex and has the potential to become complicated and hostile. To protect the hard earned assets of your family business while negotiating equitable distribution, contact the Cherry Hill family law offices of premier South Jersey divorce lawyer Richard C. Klein Esq. to guard the financial security you’ve built up through your family business. Call us today at 888-763-4490.
