Good news and/or bad news? 4 considerations for business owners going through divorce

As a reader of ROI-NJ, you might be the owner of a business or otherwise have a meaningful ownership interest in one. Do you ever wonder what would happen to your business in the event of a divorce in New Jersey? Here are four questions you may want to consider if you are contemplating or going through a divorce, which, depending on your circumstances, may come as either good news or bad news.

Q. If I own a business, isn’t it just mine?

The short answer: no. In general, absent a premarital agreement, a business owned during a marriage is a marital asset. And, while the premarital value of your business is not a marital asset, the increase in its value during the marriage is. In the event of divorce, the value of the business or the increase in its valuation over the course of a marriage, is subject to equitable distribution — shared between spouses. What does that mean? Is it “divided 50/50”? The short answer: no!…

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