A divorce where one or both parties are business owners involves unique and specific issues. Business entity interests are complex assets that require calculation of value for purposes of equitable distribution; and business income and perquisites impact party “needs” and “abilities to pay” for support purposes. In addition to those significant issues, there are a myriad of other concerns to address in these divorce cases.

Need for a Business Valuation

Equitable distribution of assets is a multi-phase process that includes: (1) identifying each asset owned by either party; (2) valuing each asset; and (3) allocating ownership interests and distributing each asset pursuant to the factors set forth in N.J.S.A. 2A:34-23.1. Thus, to properly allocate the value of a business between two divorcing spouses, the parties must first place an accurate value on the business interests.