Dividing Business Interests in Monmouth County

We Help Protect Our Clients' Best Interests, in Life & in Business

If you own a business and are divorcing in New Jersey, your business interest can be an asset that is divided according to New Jersey's Equitable Distribution statute.

Valuing your business for this purpose is not as simple as merely determining its value on the open market. That may be a part of the evaluation, but there is much more to it.

Because you have put so much of yourself into your business, this is not an asset that you will be taking lightly. So it is wise for you to consult with experienced Monmouth County divorce attorneys who understand how to apply the law while acting in your best interest.

For over 60 combined years, the divorce attorneys at the Law Office of Steven P. Monaghan, LLC have helped business people like you through the equitable distribution of their businesses, enabling them to protect as much of their assets as the law allows.

To find out how we can help you, contact us today and schedule your free initial consultation.

Equitable Distribution: How Businesses Are Valued in New Jersey

In addition to a business value based upon an asset-based sale, or by comparison of the business to other businesses that are publicly traded, the value of the income stream can be valued through an approach called "capitalization of income."

Capitalization of income involves several steps. They are, in brief:

  • Forensic accountants determine the total financial benefit derived from the business by the business owner by including the distribution, wages and other items of monetary value paid by that business, items such as health insurance and personal expenses, including car expenses.
  • From this amount, the reasonable compensation of the owner's services is deducted.
  • The excess is capitalized to determine the present fair value for purposes of equitable distribution.
  • This value is then divided as part of the overall property distribution of the assets and liabilities.

Determining the fair value of complex assets such as businesses requires a team of experienced professionals such as forensic accountants and divorce attorneys.

Wondering How Your Business Will Be Valued in a Divorce? Call Us.

From our past experience with clients like you, we know that you probably have many questions regarding how your business will be valued in your divorce. So talk to us; your initial consultation is free.

Call a lawyer at the Law Office of Steven P. Monaghan, LLC today at (732) 624-6343. Our Monmouth County divorce attorneys know how to ensure your business interests are well protected.

Clients First. Quality Always.

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