If a business is considered marital property, it will be valued and considered when dividing property. When a couple litigates their divorce and a business is part of the allocation of assets, the case can become quite complicated. Even if one spouse owned the business before the marriage, there are many ways in which a court would consider it marital property. Property distribution is one of the most contested issues in a divorce. Regardless of whether one spouse worked full time while the other cared for the home, the couple worked together, or the couple worked separately, the business may be a part of the equitable distribution of assets. It is the burden of the party seeking to except the business from marital property to prove it. If that burden is not met, the court will determine that the business is marital property and therefore subject to division between the parties. Even though the couple may disagree as to the entitlement of the other, the more important factor could be the exposure of the business to court-ordered forensic accountants. During a Collaborative Divorce or Mediation, the results of any examination of business finances are confidential. If you are a business owner and are interested in the collaborative or mediation process, you should contact Leslye M. Schlesinger. Ms. Schlesinger has years of experience working with all couples hoping to avoid litigation and resolve their issues outside of the courtroom. If you need quality legal services, contact Leslye M. Schlesinger.
Business owners benefit from collaboration and mediation
Business owners have a lot to consider when they face a divorce. If they decide to litigate their matter, a judge will decide on the case with very little information. Something to consider when litigating a divorce is the need for a full disclosure of finances for both the individuals and the business. A court may issue a forensic accountant to sift through the business’s finances. When this happens, a business is exposed to the circulation of confidential client information, which could hurt the bottom line. The other issue one faces is that if there are any discrepancies that may interest the Internal Revenue Service, the company could face an audit and more as the Judge hearing the case is going to report such discrepancies to the IRS. If a business is part of a divorce, it is important for the owner or owners to consider alternative dispute resolution. Collaboration Divorce and Mediation have the same goal and reach the same conclusion. Both parties will fully disclose financial information and the business will be valued. The difference is that the financial experts that help assign a value to the business will not share any information with outside parties. Alternative dispute resolution is a confidential process and no one is a mandated reporter to the IRS.
Contact a New City collaboration attorney or Rockland County mediator
Leslye M. Schlesinger is honored to be a legal resource for the people of Rockland and Westchester County regarding divorce and family law matters. Throughout her career, she has guided countless couples through matrimony law. She now focuses her practice on helping couples avoid the downside of litigation while they come to an amicable conclusion to their legal matter. If you need quality and compassionate legal services from an experienced collaborative divorce lawyer or the guidance from a seasoned mediator, contact Leslye M. Schlesinger today.