Commack Division Of Family Businesses Lawyer
The most complicated part of a divorce is often figuring out an equitable division of marital property. This process gets even more complex if there is a family business involved. After all, a business is not like a bank account that you can just split 50/50. The business itself is an ongoing concern that will need to continue after the divorce becomes final.
This is where working with a knowledgeable Commack division of family business lawyer can prove beneficial to both you, your spouse, and your business. At the Law Office of Joshua Adam Kittenplan, P.C., we understand the problems of dealing with business assets during a divorce proceeding. We can represent your interests and make every effort to obtain a fair outcome for you and your business.
What Happens to a Business When the Owners Divorce?
Unlike a public company–i.e., a business that trades its ownership shares on a stock exchange–a closely held or family business typically has just a few owners. In many cases two spouses co-own the business together. In other situations one spouse may be the sole owner.
But here is where things can get tricky. Even if one spouse is the owner of the business, it may still be classified as a marital asset in a divorce case. Classification depends on a number of factors, but generally speaking, if the business was started by either during the marriage it is a marital asset. And even if one spouse started a separate business prior to the marriage, any increase in the valuation of said business during the marriage can still be considered a marital asset.
Because of these rules, it is usually necessary to establish a proper valuation for a closely held or family business during a divorce case. And if the parties cannot agree on what to do with the business moving forward, it will be left to a judge to decide how to make an equitable division of the business. Some of the available options include:
- Requiring the parties to sell the business and divide the profits;
- Have one spouse “buy out” the other spouse’s equitable interest in the business;
- The parties agreed to continue as co-owners of the business following the divorce.
Every divorce–and every business–is different, so it is important to work with an attorney who can help review all of your options before deciding how to proceed. If you and your spouse are able to work together, it may be possible to quickly obtain a valuation and decide a proper course of action. If there is contested litigation, however, you may need to obtain your own appraisal of the business and convince a judge that you have a stronger plan for disposing of the business as part of the overall divorce judgment.
Contact Attorney Joshua Adam Kittenplan Today
Every divorce has its challenges. But these challenges can increase exponentially when there are business assets involved. So if you need legal advice or representation from a qualified Commack division of closely-held and family business lawyer, contact the Law office of Joshua Adam Kittenplan, P.C., today to schedule a free initial consultation.