In New York, marital property is governed by the principle of equitable distribution subject to several factors that go into what is honest and fair in the state. Unlike other states in the USA governed by community property laws, like California, spouses’ assets are not divided 50/50.
Ron Phillips New York- an insight into what happens to a business in the event of a divorce
Ron Phillips from New York is an attorney in human rights and business laws and is the Executive Vice President and Chief Human Resources Officer at Sysco. According to him, if you and your spouse are the owners of a business at the time of the divorce, the primary question here is to consider whether the company is a marital asset or not and whether they would have to share ownership with their ex, or is there the possibility of losing the right of the business altogether?
Factors influencing marital property
According to Ron Phillips New York, multiple factors determine whether the business should be considered marital property or not, along with the equitable percentage the other spouse is entitled to enjoy. Some of the above factors include whether the other spouse invested in the business or not, was the business established before the marriage or after, does the other spouse work in the industry or assisted it, was the business launched with joint funds of both the spouses and how was it formed?
Law as marital property in New York regards a small business, and it is included when assets of both parties are distributed during a divorce proceeding in the state. With the help of an attorney in family law, you can protect a business from being included in marital assets.
Post or pre-nuptial agreement- get legal aid and advance from a skilled lawyer
You can enter into a post or pre-nuptial agreement with your spouse to keep the business separate from the other marital assets. To make this agreement honored at the time of the divorce, it must be entered freely by both of you without coercion. At the same time, the terms and conditions listed in the agreement must be fair for both of you. Any contract that benefits a spouse is liable to challenge in a family court and can even be quashed by a judge.
Corporations and their protection during a divorce proceeding
According to Ron Phillips New York, corporations have a certain amount of protection when there are clear written statements about which spouse controls the business. If the company has investors, partners, and shareholders, the company needs to be established so that it legally protects the stakeholders even after your divorce. Choose a legal professional with several years of experience and expertise in the above field. Divorce is a complex affair, and it is essential for you always to consult an experienced family lawyer with your spouse to understand how it will impact your life and the business both of you own. With the right lawyer, your divorce will be managed professionally, protecting the company simultaneously.