Small Business Valuation in Divorce
A considerable number of New Jersey divorce cases involve couples who have a family or small business. The matter of a small business in a New Jersey marriage dissolution case can make the divorce process at least somewhat more complicated. As part of the process of pursuing a marriage dissolution in this type of situation is the need to obtain a divorce small business valuation.Decision of What to do with the Business
Before diving deeper into the matter of a divorce small business valuation, a consideration of the options of what to do with that enterprise is a necessary preliminary consideration. The most commonplace alternatives associated with addressing a small business in a divorce include:
- Selling the small business
- Setting aside the small business to one of the parties to a divorce
- Maintaining joint ownership of a small business with a third-party operator
- Maintaining joint ownership of a small business with one party involved in its operation
- Maintaining joint ownership of a small business with both parties involved in its operation
If the enterprise is to be sold or set aside to only one of the spouses, an accurate divorce small business valuation is mandatory. In the case of the three alternatives in which joint ownership continues, a divorce small business valuation may not be mandatory per se. However, just because something is not mandatory does not mean that it is not preferable.Joint Agreement on Valuator or Appraiser
Ideally, both you and your spouse can agree on one professional to undertake the valuation of your small business. The ability to agree on an independent valuator can save time and money when it comes to ascertaining the value of your family or small business.Individual Valuators or Appraisers
An alternative is for each spouse to obtain their own, individual professional to provide a valuation of the family or small business. This can be necessary in cases in which marital assets are a more hotly contested issue.Equitable Division of Property Standard
The division of assets and debts in a New Jersey divorce case is governed by a judicial standard known as the equitable division of property. This application of this standard overarches the need to obtain a valuation of a family or small business that will be among the assets of a divorce.
The equitable division of property standard does not require an even splitting of the assets and debts accumulated by the parties during the course of a marriage. Rather, the assets and debts must be distributed between the parties to a divorce in a manner that is deemed just and equitable in consideration of the specific facts and circumstances surrounding a particular New Jersey marriage dissolution case.Protect Your Legal Rights in a Divorce
If you and your spouse are the owners of a small business, the need for legal representation in a divorce case becomes even more significant. The legal team at the Law Offices of Peter Van Aulen is here to serve you. You can schedule a free initial consultation and case evaluation with a New Jersey divorce lawyer at the firm by calling (201) 845-7400.