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South Jersey & Philadelphia

The truth about your business during a divorce

On Behalf of | Apr 8, 2021 | Business Owner Divorce, Divorce

While New Jersey has one of the lowest divorce rates in the country, some couples aren’t happy with their forever plans. As they decide to end their marriages, there are many questions that come to mind. In the event that you’re a business owner, you may be fearful about what will happen to your company as a result of your divorce.

Sorting out the facts and the myths

If you spend just a few minutes online researching the topic of divorce as a business owner, you’ll come across a lot of contradicting information. This can not only be frustrating but leave you wondering just what’s going to actually happen to your business as you enter into the divorce process. The best way to help fight this frustration and put your nerves at ease is to get factual information about the possibilities of what’s going to happen to your business so that you can face them head-on and set yourself up for the best chance of an ideal outcome.

Your business is most likely not off-limits during a divorce

Many entrepreneurs believe that because their estranged spouse had no interest or participation in the operation of their business, that makes them off-limits to being entitled to any part of it. In reality, that’s not true. Most states will consider your business marital property. The only way to typically avoid this is to have a prenuptial agreement stating that your business is separate. However, if you’ve used any of your marital income to support the business, it may be considered marital property for purposes of property division.

As a business owner, it can be hard to accept the fact that your spouse may be entitled to some of your venture. While you may think that the only way to remedy this issue is to sell the business, most judges will come up with an alternative solution. It’s a good idea to sit down with a lawyer and determine your options.