Divorce is never an easy process, but for business owners, it can be particularly complicated. Not only are there the usual issues of asset and debt division, but there are also the added complexities that come with splitting a business. It is a unique set of circumstances that requires an experienced attorney who specializes in high-asset divorce.
Let us look at some of the common mistakes business owners make when going through a divorce.
1. Failing to Plan Ahead
When making decisions about your finances during a divorce, you need to take into account your long-term financial strategies and goals. It is critical to plan ahead and consider the potential implications that could arise from any decisions you make for your business during the divorce process. An experienced attorney can advocate for your best interests to be taken into consideration while planning for both short- and long-term financial business goals.
2. Underestimating Your Spouse's Role
Many business owners assume that their spouse has no right to any portion of the business or its assets, but this is not always true. Depending on the circumstances of your marriage, such as how long you have been married, if you have a prenuptial agreement, and if one spouse contributed financially or otherwise to help build the company, your spouse may be entitled to some portion of the business’s value or assets. An experienced attorney will be able to advise you on what rights your spouse may have in regard to your company and its assets in order to create an equitable settlement agreement.
3. Not Considering Tax Implications
You might wish to consider potential taxes when making decisions regarding finances during divorce proceedings—especially if you own a business. This means looking beyond just short-term gains in order to understand the full scope of tax liabilities associated with any decisions made related to asset division or alimony payments—both of which could significantly affect your bottom line for years down the road. A knowledgeable attorney and a local tax professional will have experience navigating these complex tax considerations so that you can make informed decisions regarding how best to protect yourself financially both now and in the future.
Unwavering Commitment to Delivering Results
Divorces involving businesses often require special care due to their unique set of complications related to asset division and taxes; therefore, it is crucial for New Jersey business owners considering divorce to consult with an experienced high-asset divorce attorney who understands these complexities firsthand and can ensure that their best interests are taken into account throughout every step of the process.
At Herbert & Weiss, LLP, our team of experienced attorneys understands that business owners often face complicated divorce processes. Call us today at (201) 500-2151 to schedule a consultation and learn more about how we can help you avoid complications during your divorce process.