Fairport Business Divorce Lawyer

Fairport Business Divorce Attorney

Divorce is often a challenging and sensitive process. When going through a divorce, business owners need to worry about their company’s future in addition to handling issues like child custody, asset distribution, and spousal support. If you would like to preserve your business throughout your divorce, a Fairport business divorce attorney can assist you.

The Trotto Law Firm, P.C.: Why Choose Us?

We know that every divorce is different. To achieve the greatest outcome possible, we can take the time to thoroughly comprehend your circumstances, needs, and desires. Divorce may be difficult, particularly for entrepreneurs. Our Fairport family law attorneys at Trotto Law Firm, P.C., are dedicated to defending your rights.

We provide the strong legal representation you need to get through this trying period, and we can offer effective strategies to ensure the security of your company and your personal assets.

Marital vs. Separate Property

In a divorce, it’s critical to distinguish between separate and marital property. Premarital, inherited, and gifted assets are categorized as separate property, while assets obtained during a marriage are categorized as marital property. However, when it comes to businesses, this distinction isn’t as easy to determine.

For instance, your business can initially be regarded as separate property if it was founded before the marriage. On the other hand, your company can be deemed marital property if it expanded substantially during the marriage. The court will take into consideration all kinds of contributions the spouses made in the marriage and to the business, directly and indirectly. This can include the following:

• Working in the business
• Making financial investments in the business
• Providing one spouse with the emotional support needed to run the business
• Performing household duties throughout the marriage while the other spouse focuses on the business
• The spouse’s contributions to child-rearing
• Any behind-the-scenes contributions to the business, such as helping formulate expansion plans

Equitable Distribution in a Fairport Divorce

Property is not always split 50/50 in divorces in New York. Equitable distribution formulas are used with the goal of dividing property in a fair manner according to the facts of the marriage and divorce. As a result, in New York, there is no communal property in divorces. Separate and marital property exist instead. The first step in splitting property in a Fairport, New York divorce is understanding this disparity.

Using equitable distribution, one spouse may receive the company they founded, while the other would receive other equitable assets. An example of this would be if one spouse opened a counseling practice, but the other spouse does not have the licensing or background to work in the business. The counselor might be awarded the practice, while the other spouse would be awarded other assets to make up for this financial difference.

Resolving a Business Ownership Dispute in a Divorce

If you and your spouse cannot agree on or do not know how to resolve business ownership issues, there are a few ways this can be addressed. While each business is unique, there are some general ideas on how the two of you can resolve the dispute. This includes:

• Co-ownership. Under this agreement, the business is owned by both spouses even after a divorce. Strong working ties and a high degree of mutual trust in one another’s managerial skills are necessary for this to be successful. Co-ownership is unlikely to work in situations where there is a great deal of animosity and may even make things worse. Both spouses must be willing and able to work together.
• Selling the business and splitting the profits. By selling the company, the couple is able to separate their finances. It’s important to note, however, that finding a buyer and closing a business deal can take months, which may add time to the divorce process.
• Buying out the other spouse. In a buyout, one partner keeps the company and pays the other for their portion. If there are enough assets to cover the transaction’s costs, this may be an amicable solution. Using cash or liquid assets is one option. Alternatively, the selling spouse’s share can be offset by other assets like securities, home equity, or retirement accounts that account for value after taxes.

FAQs

Q: What Factors Determine if a Business Is Marital Property?

A: Generally speaking, a business is considered marital property if it was established during the marriage. However, even businesses that began before the marriage can be considered marital property. For instance, if one spouse started a business, but the other spouse made contributions to the business that helped it to grow, it will likely be considered marital property.

Q: How Is the Value of a Business Determined During Divorce Proceedings?

A: The value of a business is determined during divorce proceedings by utilizing the help of business valuation professionals to evaluate a range of elements, including the company’s assets, liabilities, profits, market circumstances, and goodwill. Professionals calculate the business’s fair market value or investment value and offer unbiased assessments on the value of a business.

Q: Can Both Spouses Co-Own a Business After a Divorce?

A: Yes, both spouses can co-own a business after a divorce. The two spouses can reach an agreement to co-own a business if that’s an amicable solution. However, this decision requires both parties to have a level of trust and mutual respect in order to be successful. If there is animosity or tension between the parties, this is likely not the most beneficial option for the business or the couple involved.

Q: What Steps Should I Take to Protect My Business Interests Before Divorce Proceedings?

A: Before divorce proceedings, there are a number of steps you can take to protect your business interests. Some things you can do include compiling financial documentation, considering valuing the company, and speaking with a divorce lawyer to learn about your legal options regarding business protection or prenuptial and postnuptial agreements.

Contact Trotto Law Firm, P.C., Today

If you are in the process of divorce, you need to have your business interests protected. Contact Trotto Law Firm, P.C., today to speak with someone about your business and how you might safeguard your interests.