1. Home
  2.  | 
  3. Family Law
  4.  | Divorcing can affect a business in New Jersey

Divorcing can affect a business in New Jersey

On Behalf of | Sep 24, 2020 | Family Law

Divorcing can have all kinds of effects on someone’s life. These include personal impacts, especially for couples with children. But it can also have serious financial effects on people. The division of property that comes with divorce can even have an effect on businesses owned by one or both individuals in the marriage.

Plan ahead

For people who own businesses, it’s a good idea to keep company assets separate from their homes. Sometimes, people are tempted to use the equity in their homes to invest in their businesses, but this can create complications for people who are divorcing. A prenuptial or post-nuptial agreement is also useful in defining the business as property that exists outside of the marriage.

Other solutions

In some cases, people haven’t planned ahead. Their spouse may own stock in their company or have a role in the day-to-day operations when they decide to divorce. It can be very difficult to work under these conditions. Sometimes, the best solution is just to sell. Selling shares to the spouse or another stakeholder is one way to just get out of a bad situation.

Another option can be to offer other concessions to the spouse on the condition that they divest themselves from the business. For example, this could mean giving an ex the home or a larger settlement. It’s a good idea to negotiate timed payments on any settlements, if possible.

Divorces can be expensive and stressful. Sometimes, business leaders need to sell shares or seek loans in the aftermath of a divorce. It’s always prudent to get advice from an experienced family law attorney before making any big business moves during a divorce.