Property division is one of the most complex aspects of divorce. You and your spouse must divide up your assets and debts, and if you are a New Jersey business owner, your business could be considered at least partly as a marital asset, making property division even more complicated.
If it looks like your marriage is heading toward a divorce, you may be worried about your business. In addition to worrying about the success of your business after divorce, you may fear that the emotional and mental impact of your divorce could affect your ability to run your business.
Understanding what property division means
The goal of property division in a divorce is to make sure that marital property is divided fairly. This does not mean that your or your spouse must receive certain pieces of property, but rather that the ultimate division is fair, regardless of who keeps what.
There are many helpful things you can do as you prepare for your divorce to increase the chance that your business will remain intact and thriving both during and after your divorce.
Give up other property in exchange for your business
If your main goal with property division is to keep your business, consider giving some other property to your spouse. Remember, the goal is a fair division.
You may not want to let your spouse get both the marital home and a vacation home, but if the combined values of the two homes equal the value of your business, this may be a fair and even division that allows you to keep your business.
Offer your spouse a payment
There may not be enough property to give to your spouse. Offer to pay them cash or give them stock in the business in exchange for you keeping the business. Consider selling a portion of your stock to obtain the necessary cash.
The bulk of your time during the property division process is spent negotiating. Get creative with solutions.
Perhaps you cannot pay your spouse an entire cash payment at once. Propose a payment arrangement, with payments coming from your wages gradually over time.
These are just a few ideas that could potentially help you keep your business after your divorce and keep in running smoothly. An experienced divorce attorney can advise you on the impact of a divorce on your business.