Legal Question in Family Law in New York

Re: We both own the business on paper

You should be able to find an divorce attorney with business expertise and experience in dealing with these issues. The allocation of shares (title) does not determine how the business is divided. Assuming you acquired the business together after you were married, the whole of it is marital property and subject to equitable distribution, which does not mean 50/50, by the way. Many factors may be considered, but your disproportionate contribution to the value of the company should weight heavily. Consult a qualified attorney as soon as possible, as careful advance planning may help you get a greater share in the end. Feel free to call my office to schedule an appointment.

Re: We both own the business on paper

This is an interesting question. There are a number of options available.

While the law is' if you are co-owners, then you are partners. One cannot fire the other. Obviously. Each partner's share of the business is marital property and can be distributed pursuant to an order of divorce.

This is the interesting part: the business does not have to be 'dvided up' or otherwise distributed.

A clever attorney may argue to the court that his presence is necessary to the continued success of the business and then (this is the clever part) have 90% of the profits paid out to you as salary.

That is how I would, based on the information you have given, litigate the case.

Two (2) years down the line, I would make a buy-out offer to him based on the profits of the business. Your salary, 90% of the income, would be a business expense and not included as a part of the profits.

Another option is to show that his involvement included criminal activity (the drugs purchased from customers and not the embezzlement)and, therefore, any agreements related to his interest are not enforceable (you own everything). Public policy would indicate that the divorce order recognize this 'forfeit' and award everything to you.

I could discuss even more options, but I am allowed only a limited number of words on this website.

You are welcome to a consultation for no fee.

I have an MBA as well as a legal license and I managed a small business over 10 years before practicing law, so I know the 'ins and outs' of small business ownership.

Re: We both own the business on paper

Your divorce attorney should advise you as to whether a second attorney is necessary.

In most situations, it will not be necessary to retain a second attorney. Generally when a business is involved, the attorney will recommend that you retain an accountant to evaluate the business. Depending on this evaluation, you may be entitled to more than 50% of the value of the business. Keep in mind that each case is different.