Will My Divorce Impact My Business?
It takes a lot of time, energy, money, and hard work to build a business. Your business may be your pride and joy, you may believe it is yours and yours alone. But if you are going through the divorce process, it is important to understand how your business will be assessed when assets are divided. The value of your assets and debts is part of determining equitable value and divorce distributions. It can be a complex process when one or both spouses own a business.
If you need help understanding your divorce options, enlisting the help of a Bucks County family attorney can help. New Jersey divorces and Pennsylvania separations are not always easy. There are many emotions. Plus, there are investments to protect. A lawyer can focus on equitable distribution. If protecting your business is your priority, your lawyer will take that into account.
Determining the Value of a Business
In order to appropriately value a business, many things are taken into account. It is not simply what amount is in a business bank account at the moment of a separation or divorces. Other things will also be considered.
- Property could be part of the value
- Assets and investments could add to worth
- Debts and liabilities may be taken into account
- Inventor, office equipment, and machinery
- Intangible assets
Of course, the figures in business bank accounts and pending orders and sales will be assessed as well. Liabilities could include rent fees and credit lines.
When determining the value of intangible assets, the role of the business will be considered. For example, there may be customer service and strong relationships involved in the success of the business. If the business is owned by both spouses but one person maintains all of the relationships, it could be argued that the person who has put energy into those relationships is entitled to compensation for being the personality of the organization.
Pennsylvania and New Jersey are Equitable Distribution States
Different states have different divorce laws. In the states of Pennsylvania and New Jersey, equitable distribution rules are followed. This means that properties are distributed in a manner that is fair, rather than equally. These rules also apply to businesses within a marriage.
In short, this means even if you launched your business and ran it on your own, you still may have to distribute some of the assets to your spouse. This could be true if the business began in the home and your spouse spent time, money, and energy to keep your workspace secure and efficient. Then, they may be awarded the marital property to offset the business asset you will be in sole control of once the divorce is finalized.
Are you ready to talk to a divorce lawyer about how your business will be distributed? The family law attorneys at Kardos, Rickles & Hand can help. Our dedicated legal team understands the finer points of family law. There are opportunities to create the life you want. Schedule your free consultation today, call 215-968-6602.