Mind Your Own Business: How to Split Your Business in a New York Divorce

When you are married there are many assets you and your spouse accumulate that may need to be evaluated in order to equitably divide the property during divorce.  Of interesting importance is the valuation of a business.

There are two scenarios where the business comes into play.  First, you or your spouse may have owned (and continue to own) a business before marriage.  In this case your spouse may be entitled to any appreciation of the business from the time of marriage until the time of divorce.  Courts reason that your spouse contributed to the appreciation of the business through his or her support.  The other scenario is if you and your spouse own a business together.  In this case, it is obvious that your spouse would be entitled to a portion of the sale of the business when you divorce.

The parties to a divorce can choose to have the business evaluated at two different times: either from the date of the commencement of the action or the first trial date.

In today's economic upheaval, the date to which a business is valued can make a drastic difference in the amount of money you and your spouse receive.  By way of example, Jack owned a business before he met Jill.  In 2008, the date Jack filed for divorce, his business was worth $100,000.  The parties tried to amicably resolve the matter.  When negotiations went sour, Jack decided a judge must aid in dissolving the marriage.  Two years later the parties are preparing for trial.  Now, due to the poor economic conditions, Jack has not been getting as many clients as in 2008.  The business is only worth $10,000. 

It is clear from Jack and Jill's story that the date you select to evaluate a business is crucial.

 If you are looking to obtain a divorce Long Island Divorce Attorney JAY D. RAXENBERG can help make sure your business is protected.  Click here to schedule a complimentary consultation.