Suffolk County NY Divorce Attorney
Guiding clients through a divorce where a business is involved
Divorce is a complicated matter that is compounded by the presence of a business. Whether the spouses work together or not, a business can complicate a divorce. If a business is considered marital property, it may be addressed in a court case. Property deemed “marital” will be divided in a just and fair manner, called equitable distribution. It is important to note that even if one party worked solely on the business, it still may be marital property and the other spouse could be entitled to some of its value. If you are a business owner or the spouse of one, you need an attorney that will fully take the business into consideration, protecting your rights and future. Peter V. Mandi & Associates, Inc. is an experienced law firm that assists clients through all matters of divorce. If you need a law firm to assess your situation, guide you through your legal matter, and passionately advocate on your behalf, contact Peter V. Mandi & Associates, Inc. for a consultation.
Marital property and a business
When property distribution is a contested issue in a divorce, New York courts will decipher between marital and separate property. Any asset deemed marital property will be valuated and distributed by the court in an equitable fashion. Property distribution is determined by a set of guidelines. If a business is considered marital property, there is a lot to consider.
Assigning value to a business in the case of divorce can be a huge burden on the business and business owner. When financial experts dive into the books and functions of a business, it makes the company vulnerable to the circulation of confidential information and, in cases of financial discrepancies, a reported matter to the IRS.
Protecting one’s business is important
There are ways to protect your business from the divorce process. One way is to draft a prenuptial or postnuptial agreement that establishes the business as separate property or details what will happen in case of divorce. Another way to protect one’s business is to draft a shareholder’s agreement. This can be utilized to assign value each party’s stake in the business and even restrict the transfer of ownership.
Contact Peter V. Mandi & Associates, Inc.
Divorce can be overwhelmingly complex when a business is involved. A business may be your most valued asset and it is important to do everything you can to protect it. When a divorce case is based on property distribution, the business can be negatively impacted by equitable distribution. If you are a business owner and need quality legal support, contact Peter V. Mandi & Associates, Inc. for a consultation.