Penfield Business Divorce Lawyer

Penfield Business Divorce Attorney

Divorce is a complicated process that can involve many considerations regarding child support, spousal maintenance, asset division, and child custody. These difficulties become more pressing for business owners, as a company may be an essential component of the divorce process. A Penfield business divorce lawyer can help you every step of the way, recognizing the unique challenges that come with being a business owner throughout a divorce.

Why Choose Trotto Law Firm, P.C.?

Divorce can be a challenge, especially for business owners. At Trotto Law Firm, P.C., our Penfield family lawyers are committed to protecting your interests. We provide the tailored legal advice you need to help you through this difficult time. We can provide strong strategies to ensure your business and personal assets are protected.

We recognize the unique nature of each divorce. We can take the time to fully understand your case and needs in order to achieve the greatest possible result.

Business Owners in a Divorce

A couple’s business, whether held by one or both spouses, plays a big role in the divorce process in Penfield, especially if there are children involved. Some important things to consider include:

• Property classification. This refers to determining if the company is separate or marital property.
• Implications for ownership. It must be decided if and how much of the company is regarded as marital property.
• Inheritance impact on children. This includes making sure your kids’ inheritance is safeguarded in the future.

Business Valuation

Assigning a value to the business is an important step in divorce proceedings. This can be done using a few different methods. The value can be based on fair market value, which is determined by the market and who controls the business. It could also be determined based on investment value, which is specific to the spouse who owns it, rather than its open market value. Factors determining the business value include:

• The nature of the company
• The state of the local market
• Business form (partnership or corporation)
• Selected valuation approach
• Accrued professional goodwill
• Total assets of the business

Equitable Distribution in New York

In New York, any assets acquired during a marriage are regarded as joint property under the equitable distribution rule. Businesses are included. Division of property is not always equal but is aimed to be equitable, depending on the circumstances of the marriage and divorce.

For example, the spouse in charge of the company might get the business in the divorce settlement, while the other spouse would receive other assets to balance the business’s worth. This guarantees a just allocation, although not necessarily an equal division.

Protecting Your Business Interests

Protecting business interests is one of the biggest worries for business owners going through a divorce. However, there are legal measures you can take to protect your company’s assets. Some of these measures include:

• Prenuptial and postnuptial agreements. These agreements outline how property may be divided should the marriage end in divorce. The agreement may also state which property is off limits or which properties will remain separate.
• Business valuation. An attorney can collaborate with financial professionals to guarantee that the fair market worth and investment value of your company are taken into account.
• Negotiation and settlement. A lawyer can help you reach a settlement that upholds the equitable distribution of assets, safeguarding your business interests.

Marital vs. Separate Property

Differentiating separate from marital property is important in divorce. Assets acquired before the marriage or through inheritance or gifting are classified as separate property, whereas assets acquired during the marriage are considered marital property. However, the lines can blur, particularly when it comes to business assets.

For example, if you began your business before the marriage, it may be treated as separate property at first. However, if your business grew significantly during the marriage, it may be considered marital property. This is the case whether the other spouse contributed financially or not. The court will look at all factors.

For instance, if your spouse supported you emotionally, or if they shelved their own professional endeavors to be a stay-at-home parent, allowing you to focus on the business, it may be considered a contribution and will likely result in the business being considered marital property.

FAQs

Q: How Do You Split a Business in a Divorce?

A: The first step to splitting a business in a divorce is to value the company. After the valuation is determined, the business is included in the fair division of marital property. Alternatively, the business can be sold, and the proceeds split equally between the two spouses, or the business can be divided so that one keeps the company and the other gets assets of equal worth.

Q: How Is a Business Valued in a Divorce?

A: A business is valued in a divorce through many considerations, such as the nature of the business, the state of the local economy, the company’s track record of operations, its potential for future growth, and the degree of professional goodwill involved. To determine the business’s worth, financial professionals may implement methodology such as investment value or fair market value.

Q: Can My Spouse Claim a Portion of My Business if They Never Worked in It?

A: Yes, your spouse can claim a portion of your business even if they never worked there. When courts look at contributions to businesses in marriage, they look at other factors besides just direct involvement or financial contributions. While these are taken into consideration, a judge may also look at any other forms of support a spouse provided, such as emotional support or other ways the spouse contributed to the marriage, home, or family.

Q: How Can I Protect My Business Interests in a Divorce?

A: Protecting your business interests in a divorce can involve several strategies, including having a clear prenuptial or postnuptial agreement, consulting with financial and legal entities to appropriately assess the business, and negotiating a fair settlement. Planning for future events and putting policies in place to guarantee business continuity are also important.

Contact Trotto Law Firm, P.C., Today

A divorce does not mean you need to dissolve your business. Contact Trotto Law Firm, P.C., today to learn how we can help you navigate this complex process and achieve the greatest possible outcome for you and your business.