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Business holdings and assets can make divorces complicated

| Oct 7, 2020 | Divorce |

People in New Jersey are aware of the statistics regarding marriage. Nearly one in two marriages end in divorce. While divorcing itself can be hard on a family, what can be equally as hard is splitting up the assets that were obtained during the marriage. What can make that process even more complicated is if a business is included as one of the assets.

When business relationships get personal

There are many issues that can complicate a business. If one of the spouses is a major shareholder in a business, any profits that they obtain may have to be shared. All of this depends on the state where the couple lives and any prenuptial agreements that were made at the start of the marriage. It can also get complicated if both of the spouses were involved in the business. Even if one spouse was involved to a lesser extent, that spouse will still most likely be entitled to a significant portion of the proceeds.

Married couples who have any sort of business holdings may be able to take certain measures to help ensure that they don’t lose their businesses.The best time to protect business interests is before a couple gets married. Prenuptial agreements can help strictly define ownership of assets. A separation of finances can also make a difference. By keeping assets like homes and businesses separate, those assets will be much easier to divide in a divorce. Taking out a whole life insurance policy can also make a huge difference. That money could be liquidated in the event of an expensive outcome regarding asset distribution during a divorce.

Divorce is hard for everyone involved. Splitting up assets makes everything that much more difficult, leading to acrimony. By working with divorce attorneys who have experience working with complicated financial setups, divorcees may be able to come up with a solution that works for everyone involved.