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What will happen to your family business during divorce?

As New Hampshire readers may know, January is a popular month for divorce filings. If you are considering moving ahead with this process, it is likely that you have many questions and concerns about what to expect and what your future will look like. For example, what will happen to your property or your family-run business?

For business owners, divorce can be a frightening process. Before you move forward with the decision to end your marriage, it is smart to take steps to learn about how property division works in New Hampshire divorces and what you can do to protect your long-term interests. While divorce will bring significant changes to your life, it is possible to secure a final order that allows you to have a strong and stable future.

The business of divorce

It is normal to have concerns over what will happen to your assets and property in the event of a divorce. All property accumulated, earned or purchased during the marriage is marital property, which means it is subject to division between the two spouses. However, what this means for your specific situation will depend on various factors. Consider the following:

  • If you started or owned your business before marriage, it or a portion of its assets may not be marital property. This means it may not be subject to division.
  • A gift or inheritance received during marriage is likely separate property. If your business was passed to you from a family member, it is possible that your spouse will not have a claim to it.
  • If you have an enforceable prenuptial agreement, it is possible that this will prevent your spouse from claiming a portion of assets related to your small business.

Due to the complexity of property division in a divorce involving a small business, it may be prudent to pursue a negotiated settlement out of court. This option may allow you to protect your business interests while crafting a settlement that will be satisfactory to both parties. 

Your future after divorce

During a divorce, you may feel that your future and the future of your business is at stake. In reality, it is possible to secure a final order that allows you to be stable, secure and continue with the operations of your company. 

If you have questions about what will happen to the business you worked hard to build and preserve, it may be helpful to first speak about your concerns with an experienced family law attorney.

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