Business Asset Division in New York
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When entering into a divorce, one of the most difficult aspects is that of splitting up the property and assets accumulated between both parties. Dividing separate and community property can be difficult and can often be a highly emotionally charged process. What then happens should one or both parties be involved in a business? What should occur if they are business partners? How is equity in the business distributed? These are some of the complex questions that will need to be addressed.
Regardless of the exact circumstances, it is important that the businesses and partnerships are evaluated so that both parties will be able to part ways with just amounts – no matter whether the business is being dissolved entirely or not. For this reason, having an experienced New York divorce lawyer can be an invaluable asset as these types of situations require not only legal experience, but also accounting and tax law knowledge to ensure that the accurate distribution occurs.
Breaking Up Business Assets During a Divorce
Divorce in New York involves a careful consideration of marital property, which includes business assets acquired during the marriage. In many New York divorces, one or both spouses will hold ownership of a business or will be a primary shareholder, director, managing member, or partner. However, it is important to realize that not every business is the same. For example, there are several different ways in which a business can be started which will ultimately impact the way that it is split.
Business assets may include everything from a small family-owned business to a larger corporation. The division of these assets can be contentious, and it is crucial to understand how New York law approaches this issue.
Similarly, the different types of business itself will determine the type of assets that will be available to be divided – no matter whether this refers to a tangible or an intangible asset. For example, office furniture and solid pieces of property will have a concrete value. On the other hand, something such as a stellar reputation throughout the community, while it might not have a set value, could be infinitely more valuable in the long run for something such as a medical office.
Other factors, such as any debt that was accumulated and is currently owed, will need to be taken into consideration to ensure that the resulting outcome is both fair and equitable. This will also determine who receives the payments first. For instance, a creditor will typically be the first to receive the funds. Following this, investors will be next in line. After them, partners will then be able to receive anything that is left over.
In New York, the principle of equitable distribution is followed, which means that marital property is divided fairly, though not necessarily equally, between spouses. Business assets acquired during the marriage are typically considered marital property, and their division can become highly complex. To ensure a fair division of business assets, it is essential to have a skilled divorce attorney who can advocate for your interests and protect your business.
Protecting Your Business in a New York Divorce
Divorces can be tumultuous, and they often put your business at risk. To protect your business assets during a divorce in New York, consider the following measures:
- Prenuptial or Postnuptial Agreements: Before or during marriage, you can establish a prenuptial or postnuptial agreement that outlines how your business assets should be handled in the event of a divorce.
- Business Valuation: Accurate valuation of your business is critical. Hiring a professional appraiser can help determine the true value of your business, which is essential for equitable distribution.
- Separate Property: If you can prove that certain business assets are separate property, not acquired during the marriage, they may not be subject to division in the divorce.
- Buyout or Co-Ownership Agreements: Consider crafting agreements that outline what happens to the business if one spouse wants to keep it and buy out the other’s share, or if both spouses continue to co-own the business post-divorce.
- Legal Counsel: Consult with an experienced divorce attorney who specializes in business asset division. They can help you understand your rights, obligations, and the best strategies to safeguard your business interests.
New York Divorce Attorneys You Can Trust
At Brian D. Perskin & Associates, P.C., we understand the complexities and sensitivities surrounding the division of business assets during a divorce. Our dedicated team of experienced divorce attorneys has a proven track record of advocating for and protecting the business assets of our clients.
We are committed to providing you with the guidance and representation you need to navigate this challenging process successfully. Our attorneys have a deep understanding of New York’s divorce laws and the unique aspects of business asset division. We will work diligently to ensure your rights and interests are safeguarded throughout the divorce proceedings.
Protecting your business assets during a divorce in New York requires careful planning, legal expertise, and strong advocacy. By taking the right steps and enlisting the help of experienced attorneys, like those at Brian D. Perskin & Associates, P.C., you can ensure that your business assets are handled with the utmost care and protection.
If you’re facing a divorce and need legal assistance to safeguard your business interests, contact us today for a consultation. We are here to support you every step of the way and help you secure a prosperous future for your business.