How Can a Divorce Affect My Business in New York?

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How Can a Divorce Affect My Business in New York?

If you are going through a divorce and share a business with your spouse, it is important to note the ways in which you can protect your business. Keep reading to learn more and contact our experienced New York divorce attorneys to discuss the specifics of your case and how our firm can best help you.

How can I protect my business from a divorce in New York?

There are many ways that you can protect your business during your divorce. To begin, if you and your spouse jointly own a business, it is recommended that you draft a shareholder agreement. A shareholder agreement will force both parties to determine each person’s interest in the company, assign the ownership in a divorce, and restrict or transfer ownership to another person. Furthermore, if both parties are not married yet, it may be a good idea to draft a prenuptial agreement to address various company and marital concerns. It is important to recognize that if you are married, you will not be able to draft a prenuptial agreement, however, you can create a postnuptial agreement. A postnuptial agreement is an agreement that is drafted after your marriage is already official.

If you would like to learn more about any of the above agreements, contact our experienced New York divorce attorneys. Our firm is equipped with the knowledge and dedication required to ensure that you and your future are protected.

What is valuation?

If you are going through a divorce and you have a business, it is possible that your companywill get divided equitably. The business will be divided equitably if your business is determined by marital property. If your business is determined marital property, financial experts will extensively analyze your business records to understand how your marriage and business run financially. Courts may also inquire about your business practices and expenses. It is important to provide this information accurately and honestly. If you fail to do this, you may be subject to an investigation conducted by the Internal Revenue Service.

If you have questions or concerns about how a family business might undergo equitable division, contact our firm today to learn more.

What is the difference between marital property and exempt property?

In a contested divorce, marital property is generally subject to equitable distribution. However, the exempt property can include various assets, predominantly the following:

  • Gifted assets
  • Inherited assets
  • Assets obtained prior to marriage
  • Assets that are decided as separate in a written agreement

CONTACT OUR FIRM

Peter V. Mandi, Esq. is an experienced divorce and family law attorney located in Bohemia, New York. Our firm understands the impact a divorce can have on your life. If you require strong and dedicated legal representation in Long Island, New York, please do not hesitate to contact Peter V. Mandi & Associates, Inc. today.

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