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Englewood Cliffs Legal Blog

What to do with a family business in divorce

New Jersey couples who are ending their marriage and who own a family business may be concerned about how they will protect that business or divide it during a divorce. Having one person buy the other out involves needing to get the business valued, and this can be expensive. Furthermore, neither individual may have access to the cash flow to buy out the other if their assets are largely tied up in the business. Taking out a bank loan or creating a property settlement note might be one solution.

Continuing to run the business as co-owners might be an option if the two are able to manage the emotional difficulties that could result. Couples who choose this approach should create an agreement that allows each of them to buy out the other.

What happens to the marital home after a divorce

When New Jersey couples are going through a divorce, one of the most important subjects that might have to be discussed in property division negotiations is the marital home. They will have to reach an agreement about who will get to keep the home or whether they will sell it instead.

Some people who are going through a divorce want to stay in the marital home so that they do not have to move. Divorcing parents may be attached to their home for its location in their child's school district. However, a newly single person could have more difficulty affording the mortgage and upkeep for the home that they shared with their ex-spouse. There are also many people who would rather change residences after a divorce to avoid unpleasant memories of their marriage.

Co-parenting can make divorce easier on children

Reaching an amicable settlement can be challenging for divorcing couples in New Jersey and around the country, and it can be particularly difficult for them to find common ground when contentious issues like spousal support and the division of marital property are being discussed. However, even the most belligerent are often able to see beyond their personal animosities when young children are involved. Parents generally want their children to be happy and prosper, and understanding this may be all that is required for custody and visitation talks to be calm and productive.

Much has been written about the harrowing impact that divorce can have on children, and co-parenting solutions have become far more common as a growing body of data highlights the benefits of these child custody arrangements. Parents who cooperate set an example that can pay dividends for their children later in life, but establishing rules and dispensing discipline in a consistent way can be extremely challenging for parents who agree on very little.

How debt is divided in a divorce

Getting divorced involves various complications and difficulties including the distribution of assets. Have you thought about your marital debts? Debt is treated as an asset in a divorce. If you do not know what debt you will be responsible for after the divorce, it is time to learn the basics about dividing debt.

Identifying all marital financial assets during a divorce

When New Jersey couples decide that it is time to get a divorce, they often focus on the large assets first when it comes to property division negotiations. These assets usually include the family home, any other real estate they may own, cars and expensive furniture. Once tangible items have been divided, splitting cash and hashing out child support or alimony is usually the next step. However, some smaller marital assets can be overlooked, especially if a person does not have a qualified financial adviser on thedivorce team.

Some of these assets include retirement plans, stock and deferred compensation. Even though these assets are often considered to be complicated, they can be divided in a divorce if they are marital property. Even when the assets are identified, it can still be difficult to determine what the tax implications are and what type of split actually makes sense. People also need to determine if they need a Qualified Domestic Relations Order to divide up 401(k) plans and pensions.

Social Security considerations during divorces

When New Jersey couples get divorced, many are concerned about how to divide their financial assets. In addition to retirement accounts, bank accounts and other assets, people should also think about their Social Security benefits.

People may be eligible to claim Social Security benefits based on their former spouse's earnings record rather than their own. This may make sense for those who earned less during their career or did not work at all because they stayed home to raise a family. If their former spouses' retirement benefits are higher than what they would receive through their own work records, then it makes sense for them to claim spousal benefits.

Developing a long-distance parenting plan

Divorced parents in New Jersey and around the country are often able to put their personal differences aside and work together to raise their children. Separated couples often worry about the impact their choices will have on their children, and they may seek to make the process easier by developing parenting plans designed to keep disruptions to a minimum. This can be relatively simple to achieve when former spouses live in close proximity to one another. However, things can become more challenging when one parent moves away or enters into a new romantic relationship.

The travel involved in long-distance parenting can take a heavy toll, and few parents fully comprehend the additional pressures and stresses that will be involved with when they mull these decisions over. The situation can become even more acute when the parent who is not moving objects to any changes in the agreed parenting plan because they fear that even minor concessions will inevitably lead to more profound alterations later on.

Custodial rights for grandparents

New Jersey courts recognize that grandparents usually have a role to play in the healthy development of their grandchildren. The rights of the grandparent are given consideration in some visitation deliberations, and if it is possible to include these individuals in the child's life, then accommodations will often be made. Visitation is broadly considered to be in the best interests of the child and is therefore encouraged. There are even certain well-recognized circumstances under which the grandparents may even be considered for primary custody, such as the death of the custodial parent or parents.

The court recognizes that there are emotional, developmental and social benefits to a healthy relationship between children and their grandparents. If it can be shown that the child will not be negatively impacted by the circumstances, then the grandparents may seek court-ordered visitation arrangements or even child custody. This is most common when the child has been adopted or placed into foster care. It may also occur when the parent or parents have been died or been imprisoned.

How divorce affects high net worth

When a New Jersey marriage comes to an end, the parties are often concerned about their future financial situations when they become single. In many cases, one of the spouses has forsaken a career to stay at home and take care of raising the children and other household duties because the other spouse had a high-paying job. You might be finding yourself in this type of situation and facing a high-asset divorce with all of the complexities that it entails.

At our law firm, our attorneys have extensive experience in providing representation to people who are in this type of a divorce that involves complex assets such as second homes, executive compensation, business interests, commercial real estate, and pensions and other retirement accounts. New Jersey follows the principle of equitable distribution when it comes to property division, which means that the court will divide marital assets fairly. However, this does not mean that there will be an equal split.

How to protect your financial assets during a divorce

As you may be learning from experience, the divorce process can be incredibly stressful. Not only can a divorce be emotionally distressing, but it can also have a negative impact on your finances. If you're not careful, you can make mistakes that will impact your financial situation for the rest of your life. Here are a few tips that should help you protect your financial assets during a divorce.