Family Law for Business Owners: Protecting Your Company During Divorce
For business owners, divorce involves more than dividing personal assets. A business may represent years of hard work, financial investment, and future earning potential.
During divorce, important questions often arise:
- Is the business considered marital property?
- How will the company be valued?
- What happens to future business income?
- How can operations continue without disruption?
Proper financial documentation and strategic planning are essential.
A common misconception is that businesses are equal equally divided like bank accounts in a divorce. The reality is businesses are handled quite differently. The primary determining factor in deciding what percentage of any a spouse is entitled to is largely dependent on their contributions to the business. In the case of direct contributions, where a spouse will get the highest percentage, the spouse may have worked for the business or directly helped in its growth and success. In the case of indirect contributions, which would be a lower percentage of the net value of the business, a spouse’s contributions are limited to taking care of the family to allow their spouse to focus on the business and build its success.
Business owners often benefit from working with legal and financial professionals who understand both family law and business valuation issues.
Todd Zimmer Law assists Suffolk County entrepreneurs, professionals, and business owners in protecting their interests while working toward fair and practical resolutions.
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