Before we talk about parties continuing to co-own the business, we need to identify what kind of business it is. Is it a sole proprietorship? Well, in that case, it would not apply because it’s only one owner. But both parties may work in the business. Is it a partnership in which they both own 50 percent, which is not uncommon? Is it a corporation or an S-corporation? So, we begin with what type of business.
The next question to ask is it the kind of business that the parties can continue to work? Are both parties active in the business and are they able to put aside their differences in order to continue to work in the business because both parties bring value to the business by their specific contributions? That is not common, however. What is more common is we value the partnership or the corporation or the sole proprietorship, we put a value on it and then we discuss one party buying out the other party in accord with what percentages might be equitable under their circumstances.
New Jersey attorney Cynthia Ann Brassington is certified by the Supreme Court of New Jersey as a Matrimonial Law Attorney, and regularly helps people to resolve their divorce-related issues, from property division to child support, and custody. To learn more about Cynthia and her practice visit www.LinwoodFamilyLaw.com.