Staten Island Business
Divorce Attorney
Staten Island Business Divorce Lawyer
Some business partnerships in Staten Island start out as amicable unions in which two or more people have good intentions of forming a company together. However, these types of partnerships don’t always work out as they were expected to. Sometimes, friends or spouses start a business together only to realize later that it’s just not a good working relationship, whether it be for differences of opinions and making business decisions, the reliability of one of the partners, or some other conflict of personal interests. In these cases, many individuals seek a Staten Island business divorce lawyer to end the business partnership and, if they’re lucky, maintain their personal relationship with their soon-to-be former business partner before it’s too late.
The Law Offices of Robert Tsigler, PLLC, is a reliable group of attorneys who have a vast area of experience and knowledge in business divorce cases and other similar areas. We offer a dedicated approach to your case in which we answer emails, texts, and phone calls within hours and are available 24/7 for any legal emergencies our clients have. Our complex understanding of business law in Staten Island allows us to take a straightforward approach to every case in an effort to optimize the outcome for our clients.
What Is a Business Divorce?
In Staten Island, a business divorce is very similar to a marital divorce in that in a business divorce, each party has a right to an equitable distribution of the company assets in accordance with the number of resources each partner put forth over the course of the partnership, whether working at the company or putting money into the company. Common reasons for a business divorce are listed below.
- Disagreement over business decisions, opinions, or ideas that are important to the business
- There is a mutual agreement to dissolve a partnership in a business.
- One of the partners has committed a crime against the other partner or the company.
- One of the partners is getting divorced and must pull out of the business in order to divide shares with their spouse according to a court order because the business was started during the marriage. Thus, it is considered marital property by New York courts.
- A partner wishes to retire.
- A partner files for bankruptcy.
- A partner dies.
- The business is failing due to poor management issues, bad exit planning, a partner’s family issues, or a lack of financial security.
Buy-Sell Agreements
Some companies have a buy-sell agreement in advance of a need for dissolution that delineates the steps to take in the event one of the partners needs to withdraw from the partnership. It is akin to a prenuptial agreement in that it potentially prevents disputes or arguments regarding how assets are split in the event of a divorce.
However, a buy-sell agreement is still subject to litigation. Furthermore, a deadlock of shareholders could bring an equal shareholder the right to request a dissolution of the company by a judge, which necessitates automatic litigation. In any event, if you see trouble on the horizon, big or small, discussing your options and potential outcomes of a dispute within the company with a business lawyer who knows about the laws can provide a great deal of insight into your predicament.
Mediation
In some cases, business disputes can be handled without going to court. If this is to work, all involved parties must agree to try to work out their differences through creative solution ideas and compromise. The incentive for mediation is to work out business disputes in a way that more parties can potentially benefit from rather than the alternative, which may or may not be favorable for anyone when left in the hands of the court.
Mediation allows for negotiating business conflicts with the help of a third-party mediator, usually an attorney, who can offer an objective perspective and invaluable insight into the situation from a legal viewpoint and help keep the focus on resolving the issues. By fostering an environment that can help everyone work together to come to an agreement that solves the issues, which may or may not dissolve the business, an amicable agreement is the result, and this is always preferred.
FAQs:
Q: Can Divorce Affect Your Sole Proprietorship LLC?
A: An LLC is not protected from divorce. Your holdings in an LLC are considered shared, marital property just like all of your other assets, as is the case in New York due to the equitable distribution law that governs the division of marital property. Your LLC, whether started before or after you got married, and regardless of your spouse’s financial contributions to the business, may be subject to a split of assets.
Q: How Do You Calculate the Value of a Business?
A: One method of valuing a business is by its projected income, which determines the value of the income it is expected to earn going forward. Another way to evaluate a company’s worth is to add up all the assets of a company, including inventory and equipment, minus liabilities and debts, which provides a base value, and its actual worth would consider the accrual of yearly profits.
Q: How Do Business Partners Split a Business?
A: If agreeable, the partners can determine an equal split or a split proportionate to the contributions of each partner. If the business was formed as an equal 50/50 partnership and the partners cannot agree on a separation of assets, it must be decided by a judge. In this case, both parties are recommended to hire an attorney to protect their interests and defend their rights.
Contact the Law Offices of Robert Tsigler, PLLC
If a business divorce is inevitable for your business partnership, speaking with a reputable and established business divorce attorney can answer a lot of your questions and get you moving in the right direction to dissolve your partnership and move on with your life. The Law Offices of Robert Tsigler, PLLC, can help.
Our professional legal team has had many successful business divorce cases, and as a result, we are very well-informed about the current laws and court proceedings involved in these types of cases. We can make your experience less complicated for you and your company affairs, keeping you in business, helping you back out, or assisting in an alternative dissolution option. Call the Law Offices of Robert Tsigler, PLLC, to learn more about our business divorce services.
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Getting representation as soon as possible following any Divorce-related charge is the best way to promote a positive result from a subsequent trial. Only an experienced Staten Island Business Divorce lawyer can successfully defend your case.
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