Nassau County Business Asset Division Lawyers
Business Valuation and Divorce
When you are going through a divorce, all of your assets and liabilities will be taken into consideration. Many Nassau County residents who are going through a divorce fail to realize that their business is among their assets. Therefore, during the divorce proceedings, you can lose all or part of your business if you are not careful. The court will have to determine the value of the business, if it is marital or separate property, and how the business's value should be distributed between the spouses.
The Law Offices of Paul A. Boronow, PC can lend you the counsel and guidance you need during a time that can be difficult for you and your family. We will make sure that your legal rights and best interests are protected every step of the way.
Understanding the Process
It's less challenging to determine the value of some items such as bank accounts and stocks. You only have to look up the bank account balance as of the date of filing for divorce. Appraising a property should be easy if a neutral home appraiser is hired or the spouses agree to use the tax value of the property. It can prove more challenging to place value on items such as shared frequent flier miles, qualified pension plans and business interests. These types of assets require a careful examination.
Marital versus Separate
First, it must be determined if a business interest is separate or marital. If the business interest began during the marriage with shared funds, it is marital property. In this situation, both spouses will have claim to the business. If the business interest was owned prior to the marriage or was acquired with separate funds, it could be considered separate property.
However, just because a business interest was acquired before the marriage, it does not mean that the non-owner spouse cannot benefit from its value during the divorce. A spouse is entitled to business interest that resulted from investments made with joint assets.
If shared money was used to benefit the business and that investment resulted in an increase in business earnings and properties, the non-owning spouse may be entitled to an equitable share of the property that was given to the business as well as an equitable share of the increased profits that resulted from that investment.
Once it is clear how the business and related assets should be divided, then, it must be determined how much the business interest is worth. When it comes to determining the value of the business, a number of factors may be taken into account, such as the actual worth of the business, its brand recognition and reputation in the community, comparative values of other similar businesses in the area and the projected growth of the business.
Why a Top Long Island Attorney is Important
A Long Island family law attorney will take into consideration not only the products or services produced by the business, but also the equipment used at the business such as the cash registers, furniture, computers and inventory. It will also be necessary to place value on the business assets, to review what similar businesses are worth and to evaluate the historical information and future benefits of the business.
It is in your best interest to protect your assets during your divorce proceedings. Don't risk losing everything you have built by going through a divorce without a Long Island divorce attorney by your side. Call us at (516) 227-5353 to schedule a free and comprehensive consultation.
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