The equitable distribution of the value of a business is often a highly contested component of a divorce. It is common for the parties to disagree about the value of the business and, in certain circumstances, even disagree about the date upon which the value should be set. The COVID-19 pandemic has caused significant economic turmoil and fluctuation in the values of assets in recent months. The extreme and unprecedented financial impact of the pandemic creates some uncertainty concerning how and when to value business assets for purposes of equitable distribution for parties divorcing during this pandemic.

Family courts are charged with resolving claims for the equitable distribution of marital assets upon divorce pursuant to N.J.S.A. 2A:34-23.1. In so doing, the court employs a three-step analysis to: (1) identify the property subject to equitable distribution; (2) determine the value of property; and (3) decide how to allocate each asset pursuant to the myriad of factors set forth in the statute. Rothman v. Rothman, 65 N.J. 219, 232 (1974). To that end, the goal of equitable distribution is to devise a “fair and just division” of the assets. Steneken v. Steneken, 183 N.J. 290, 299 (2005). Consequently, courts must be guided by principles of equity in applying the statutory factors and in allocating the assets between the divorcing parties. Scavone v. Scavone, 230 N.J. Super. 482, 484 (1988), aff’d,  243 N.J. Super. 134 (App. Div. 1990).

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