Introduction
The process of divorce presents immense challenges that impact various aspects of people’s lives. However, the complexity increases significantly when business ownership or assets come into play. In New Hampshire, during a divorce, the principle of equitable distribution applies, meaning that all marital property is divided fairly, although not necessarily equally, between the parties involved.
Marital Property vs. Separate Property
Before delving into the division of business ownership or assets in a New Hampshire divorce, it is crucial to understand the distinction between marital and separate property. In New Hampshire, marital property encompasses all assets and debts acquired during the marriage, irrespective of whose name is on the title. In contrast, separate property refers exclusively to assets owned before the marriage, as well as any gifts or inheritances received during the marriage that belong to one spouse alone.
Valuation of Business Ownership or Assets
The initial step in allocating business ownership or assets fairly is establishing their value. In the case of a business, the services of an expert are enlisted to conduct a comprehensive assessment. This involves taking into account various factors such as assets, debts, cash flow, and projected future income to determine the market value of the business.
For assets like homes or investment properties, appraisals are sought to ascertain their value. A financial expert may also be engaged to evaluate other assets, including stocks, retirement accounts, and other investments.
Equitable Distribution of Business Ownership or Assets
Once the value of business ownership or assets is determined, a court decides their equitable distribution among the parties involved. Equitable distribution does not guarantee an equal division of property, but rather a fair and just allocation based on factors such as:
- Length of the marriage
- Assets and liabilities of each party
- Age, health, occupation, and income of each party
- Contributions made by each party to the marital property
- Economic and non-economic contributions made by each party during the marriage
- Potential custodial parent status of either party with regard to a minor child
The court may also take other relevant factors into account to ensure a fair distribution of property.
Business Ownership in New Hampshire
Although New Hampshire’s laws do not explicitly outline business ownership in divorce cases, business ownership can still be subject to equitable distribution. When one or both spouses own a business, it becomes a key consideration during the divorce proceedings.
In some instances, the couple may agree to sell the business and divide the proceeds between them. Alternatively, the court might decide to award ownership of the business to one spouse while granting the other spouse other assets or an equivalent financial settlement.
Safeguarding Business Ownership and Assets
Taking steps to safeguard business ownership and assets prior to and during the marriage is of utmost importance. Couples may choose to enter into a prenuptial agreement, which clearly defines the division of assets in case of divorce. Alternatively, a postnuptial agreement can be considered for couples who wish to protect their assets after they are married. Individually owning property and assets also serves as a means of securing possessions that each party can retain following a divorce.
Conclusion
Divorces involving business ownership or assets entail intricate considerations and call for the expertise of legal professionals and financial specialists. In New Hampshire, business ownership and assets undergo equitable distribution, with various factors informing the fair division. To ensure a just allocation in the event of a divorce, it is essential to protect business ownership and assets before and during the marriage.