Can My Spouse Take Half My Business in a New Jersey Divorce?

Owning a business adds another layer of complexity—and stress—to divorce. You’re not just worried about who gets the house or how assets are split. You’re worried about your livelihood, your employees, your clients, and everything you’ve worked hard to build.

Divorce in New Jersey doesn’t automatically mean you’ll lose your business, but the risk is real, and ignoring it can be costly.

If your spouse is asking for a share of the business or threatening to “take half,” now is the time to understand your rights, your risks, and your options. What happens next depends on how your business was formed, how it grew during the marriage, and what steps you take right now to protect it.

Are Business Assets Subject to Division in a New Jersey Divorce?

The short answer: Yes, business assets acquired or grown during your marriage are generally considered marital property subject to equitable distribution in New Jersey.

However, that doesn’t automatically mean your spouse gets half your business or that you’ll be forced to sell it. The court’s approach is much more nuanced, and there are several factors that determine what actually happens to your business.

How New Jersey Courts Handle Business Assets in Divorce

Under New Jersey’s equitable distribution laws, courts consider several key factors when determining how to handle business assets:

• When the business was established – Was it started before or during the marriage? A pre-marital business isn’t automatically excluded, as its growth during marriage may still be considered marital property.
• Involvement of both spouses – Did both spouses work in the business? Did one spouse make sacrifices to support the other’s business efforts?
• Business structure – Is it a sole proprietorship, partnership, LLC, or corporation? Different structures create different considerations.
• Source of initial and ongoing investment – Was marital money used to start or grow the business?
• Current value and future prospects – What is the business worth now, and what might it be worth in the future?

For many business owners, the most challenging aspect is simply determining the accurate value of their business. This typically requires professional business valuation experts who understand how to assess:

• Tangible assets (equipment, inventory, real estate)
• Intangible assets (client lists, intellectual property, goodwill)
• Ongoing revenue streams and growth potential
• Debts and liabilities

Will You Lose Your Business in a Divorce?

One of the most common fears we hear from business owners is that they’ll be forced to sell or liquidate their business during divorce. While this can happen in contentious divorces, it’s relatively rare and typically not in either spouse’s best interest.

More commonly, there are several potential outcomes:

1. Buy-Out Agreement

The spouse who actively runs the business keeps it but buys out the other spouse’s interest. This might be done through:

• A lump sum payment
• Structured payments over time
• Trading off other marital assets of equivalent value (like the family home)

2. Co-Ownership Continuation

Both spouses maintain ownership interests and continue to work together. This approach works best when:

• The divorce is amicable
• Both spouses were already involved in the business
• The business is large enough to allow for separated roles

3. Sell and Divide

In some cases, especially when cooperation isn’t possible or when the business represents the bulk of marital assets, selling the business and dividing proceeds might be necessary.

4. Offset Arrangements

The business-owning spouse keeps the business intact, while the other spouse receives more of other assets to balance the equation.

How to Protect Your Business Assets Before and During Divorce

Preventative Measures

If you’re not yet facing divorce, consider these protective strategies:

• Prenuptial or postnuptial agreements – These legal agreements can explicitly address what happens to a business in case of divorce. They’re especially valuable for businesses established before marriage.
• Proper business structure – Establishing the right legal entity (LLC, corporation, etc.) with appropriate ownership documentation can help protect your business.
• Shareholders’ agreements – For businesses with multiple owners, a shareholders’ agreement can include provisions related to divorce situations.
• Keeping business and personal finances separate – Maintaining strict separation between business and personal accounts helps establish the business as a distinct entity.
• Fair salary practices – Paying yourself a reasonable market-rate salary rather than minimal compensation with large distributions can prevent claims that family expenses were subsidizing the business.

During Divorce Proceedings

If you’re already in the divorce process:

• Seek specialized legal counsel – Work with attorneys who understand both family law and business considerations.
• Consider mediation or collaborative divorce – These approaches often lead to more creative solutions that can keep your business intact while still being fair to both parties.
• Be transparent about business finances – Hiding assets or manipulating business valuation typically backfires and can result in court sanctions.
• Prepare for valuation – Gather comprehensive business records and consider working with your own business valuation expert.
• Explore creative settlement options – Look for win-win solutions that might allow you to preserve your business while offering your spouse other valuable assets or benefits.

The Netsquire Approach to Business Assets in Divorce

At Netsquire, we take a pragmatic approach to handling business assets in divorce. We understand that preserving the value and viability of your business benefits everyone involved—including children who may depend on the business’s continued success for their financial security.

Our process typically includes:

• Early assessment – Understanding the nature and value of your business assets from the beginning
• Exploring settlement options – Looking for solutions that avoid disrupting business operations
• Strategic negotiation – Working to ensure fair distribution without forcing business sales or dissolution
• Minimal conflict approach – Reducing emotional tensions that might otherwise impact business decisions

Remember that emotion-driven disputes over business assets often lead to decreased business value—harming both parties in the process. Our flat-fee model also ensures that legal fees don’t consume the very business assets you’re trying to protect.

Contact Our New Jersey Divorce Attorneys

If you’re a business owner facing divorce, remember that with proper guidance, you can navigate this process while protecting what you’ve built. The key is working with professionals who understand both family law and business realities.

At Netsquire, we’re committed to helping you find solutions that preserve business value while achieving fair outcomes. Our team can handle the specific challenges business owners face during divorce, from valuation issues to creative settlement structures.

Contact us today for a consultation about your specific situation. Let us help you protect your business assets while moving forward toward a positive new chapter in your life.