How ownership changes the divorce
For a business owner, divorce raises questions that go beyond the value of the company. Your income for support may be calculated from the business's books, including perks and personal expenses the company pays, so the support numbers and the valuation are often linked. Co-owners and investors may have rights under an operating agreement, shareholder agreement, or buy-sell provision that limits transfers or sets a price. Lenders sometimes have covenants tied to ownership or to guarantees you signed personally. A spouse who worked in the business, formally or informally, may raise claims that depend on that contribution.
Running the company during the case
Run the business the way it has been run. Sudden changes in compensation, unusual distributions, new debt, or postponed contracts can look like attempts to depress value or income, and they tend to draw scrutiny. Assemble the governing documents, recent financial statements, tax returns, and records of any loans between you and the company. Keep personal divorce matters off company email and away from staff where you can. If your spouse has access to business accounts or holds a title in the company, talk with us before changing that access, because New York's automatic orders and the company's own agreements may limit what you can do.
Planning around the company's future
Our first meeting usually looks at whether you expect to keep the business, whether a buyout or offset is realistic, and how a settlement could be financed without straining operations. We review ownership agreements for transfer limits or valuation formulas that could shape the outcome. We also talk about confidentiality, including how to handle sensitive client or pricing information that discovery may reach. Coordination with your company's lawyer and accountant usually helps, provided everyone's role is clear. The aim is a settlement the business can live with once the judgment is entered.
