Addressing Your Business during Divorce
Preserving your business interests is one of the most important issues you may face during your divorce. This is true whether only one spouse owns the business or whether a spouse has contributed to the success of the business through other means, such as contributing to their spouse’s education or career training. Often, the business is the most valuable asset in the marriage.
New York is an equitable distribution state. This means that marital assets must be divided fairly between the parties. The structure of the business will play a role in how business assets will be divided.
To resolve this often-complicated matter, you may have to:
- Value the business
- Consider each spouses' contributions to the business
- Consider possible professional licensing issues
No matter how complex your divorce may seem, our firm has an in-depth business insight and legal experience to put to use in your case. We will work to ensure that your best interests are protected as you proceed through the divorce process.
What Impact Does A Prenuptial Agreement Have On Business Division In A Divorce?
Business owners can benefit from a prenuptial agreement because a prenuptial agreement can significantly impact the equitable distribution or division of a business or its value in a divorce. Divorce attorneys emphasize that a well-drafted prenup can protect business assets by clearly outlining how the business will be treated in the event of a divorce. (Yes, you can prepare a post-nuptial agreement after your wedding day, too.)
Such agreements can specify that the business is separate property, not subject to equitable distribution or division, or detail the extent of a spouse's entitlement to that business or its value. This can prevent costly and lengthy disputes and ensure the continuity and stability of the business. However, it's crucial to note that for a prenuptial agreement to be enforceable, it must, among other things, be fair, signed voluntarily, and include full financial disclosure from both parties.
However, there are also potential limitations. Courts may scrutinize prenups for unconscionability or coercion and might invalidate terms deemed unfair or signed under duress - or in short temporal proximity to the wedding date (i.e. signing it longer before your wedding day can help). Therefore, having a prenup reviewed and updated periodically by experienced attorneys can help maintain its validity and effectiveness.
By consulting with knowledgeable Rochester business owner divorce attorneys, you can safeguard your business interests and navigate the complexities of divorce with greater confidence.
Expert Legal Guidance for Business Owners Going Through Divorce
Divorce can be a complex and emotional process, especially when it involves a business. At The Glennon Law Firm, P.C., our experienced Rochester attorneys understand the unique challenges that business owners face during divorce proceedings. We are dedicated to protecting your business interests and ensuring a fair resolution for all parties involved.
Our team can provide guidance on important issues such as:
- Preparing, updating, and/or asserting Pre Nuptial and Post Nuptial Agreements
- Valuing the business and/or its assets
- Determining ownership rights
- Advising on company governance documents with regard to events of divorce
- Resolving equitable distribution disputes through negotiation, mediation, or litigation
With our expertise in matrimonial law, you can trust that your business is in good hands. Contact us to schedule a consultation and learn how we can help you navigate the legal complexities of divorce while protecting your business.
Business & Professional Practice Valuation in New York Divorce Cases
Divorce is difficult enough without the added burden of losing your business or its value. Just because your marriage is ending does not mean that the business or professional practice that you spent time and effort building needs to be destroyed or hampered. If you own the business or practice, The Glennon Law Firm, P.C. can help you preserve it. On the other hand, if you helped your spouse build it or if you cared for the family throughout the years while it was being built, we can help you get your fair share of its value.
To speak with a Rochester business dissolution lawyer, contact us at (585) 294-0303.
