Divorce is a challenging life event, particularly for partners of a professional practice and business owners. Per RSA 458:16, asset division in a New Hampshire divorce involves equitably splitting marital property between spouses, which may include partnerships and business holdings, significantly impacting the professional and personal lives of the couple. Find out how an experienced New Hampshire family law attorney from Friedman & Bresaw, PLLC, a firm with more than 50 years of joint experience and a Best of the Lakes Region 2025 winner, can assist with divorces involving significant assets by calling (603) 707-4800.
What Does Dividing a Professional Practice in a Divorce Involve?
The division of interests in professional practices and businesses largely depends on whether the divorce court considers them as separate or marital property. In the former situation, the spouse who owns the interest may keep the asset, although the court may split the increase in its value equitably between the spouses, whereas in the latter scenario, the court divides the asset fairly between the parties, considering various factors when doing this.
Summary of Dividing Businesses and Professional Practices in a New Hampshire Divorce
Dividing a professional practice in a divorce in New Hampshire involves equitable distribution of business and partnership interests under RSA 458:16, requiring courts to fairly allocate marital property between spouses.
- Business and partnership interests, defined as ownership or financial stakes in a company or professional practice, may be classified as marital property if acquired during the marriage and subject to equitable division.
- New Hampshire courts apply equitable distribution principles, considering factors such as marriage duration, financial circumstances, income sources, liabilities, and future earning capacity when dividing assets.
- Courts often award a professional practice or business interest to one spouse while compensating the other spouse, with additional considerations including prenuptial agreements, tax implications, and contributions to asset growth.
Friedman & Bresaw, PLLC provides legal services related to divorce and asset division matters involving professional practices and business interests throughout New Hampshire.
What Are Business and Partnership Interests?
Business and partnership interests are a person’s financial rights or ownership stake in a professional practice, partnership, or company. Such interests might encompass a share of the entity’s liabilities or assets, the authority to make decisions, and profit rights. The structure and value of these interests largely depend on the type of entity and operating or partnership agreements.
What Is the Difference Between Marital and Separate Property?
Marital property typically refers to assets obtained during marriage, whereas separate property is assets received as inheritances or gifts, as well as property owned before marriage. The courts consider business and partnership interests acquired while married as marital property, typically making them subject to asset division.
Understanding Asset Division in a New Hampshire Divorce
When splitting assets during a divorce in New Hampshire, the courts follow equitable distribution principles, meaning they divide marital assets fairly but not necessarily evenly. A family court may divide all assets between the spouses, whether individually or jointly owned, if it deems them to be marital property. In terms of partnership and business interests considered to be marital property, the courts are more likely to award the interest to one party, with the other receiving compensation for their share, rather than giving both spouses ownership of the interest.
What Are the Factors Determining Asset Division in New Hampshire?
Divorce courts consider several factors when determining asset division. These include the following.
Marriage Duration
Longer marriages can lead to fairer marital asset distribution due to extensive consideration of the spouses’ shared financial contributions and financial history, but can be a more complicated process. By contrast, shorter marriages can result in a less complex asset division process focusing on returning the spouses to their financial positions before marriage.
Financial and Personal Circumstances
Factors such as the spouse’s age, economic and social status, health, vocational skills, employability, and occupation can impact asset division. To ensure fair distribution of liabilities and assets, courts also consider each spouse’s income levels and sources, financial needs, debts, and separate property.
Understand more about the division of a professional practice or business in a divorce, as well as other family law issues, by consulting with a knowledgeable New Hampshire divorce attorney from Friedman & Bresaw, PLLC. Contact us today to organize an initial consultation with our legal team.
Future Financial Opportunities
The courts take into consideration each party’s opportunities for obtaining income and capital assets post-divorce, including career advancement, training, and educational opportunities. This ensures fair present and long-term financial health for both spouses.
Other Factors
The other factors the court considers include a custodial parent’s ability to work without interfering with a minor child’s interests, a custodial parent’s need to own or occupy the marital home and own or use the contents of the household, and the spouses’ actions while married that contributed to the increase or decrease in value of marital assets. Here are some extra factors considered by the court when determining how to split marital property during a divorce:
- How asset division can affect both parties’ tax liabilities, and how to minimize adverse tax consequences
- The value of assets stipulated in valid prenuptial and postnuptial agreements
- Whether the fault of a spouse caused the marriage breakdown
- The value of property obtained before marriage, as well as inheritances and gifted assets, ensures that separate assets return to whoever owned them before marriage (although the court may equitably distribute the increase in value of this property during the marriage)
Additional considerations are whether there are significant differences between the spouses concerning contributions to home management and child care, retirement or pension expectations gained during or before marriage, as well as indirect or direct contributions made by a spouse toward the other party’s career or educational opportunities.
Tips for Safeguarding Partnership and Business Interests
Divorce can significantly impact business and partnership interests, potentially making them subject to property division. The following are tips for safeguarding partnership and business interests during a divorce in New Hampshire.
Consider Marital Agreements
Prenuptial agreements are legally binding contracts that a couple signs before marriage, outlining the handling of spousal support, debts, and assets in the event of death or divorce, as defined by the American College of Trust and Estate Counsel (ACTEC). These agreements, in conjunction with postnuptial agreements (made during marriage), can effectively safeguard business and partnership interests by clearly categorizing them as separate property, providing clarity, and minimizing disputes. In New Hampshire, the spouses must enter into these agreements voluntarily, and they have to be equitable.
Determine the Value of the Business or Partnership
Getting a professional appraisal can identify a business or partnership’s fair market value. This can help ensure spouses obtain a fair settlement or equitable asset division during trial.
Develop Continuity Plans
For individuals who own businesses or have a partnership stake, divorce may disrupt operations. To counteract this, develop a plan outlining the entity’s future operations during divorce proceedings and post-divorce. Such a plan may include customer communication, employee relations, and financial management strategies, as well as a full financial disclosure, which can maintain stability during the period of transition.
Contact a New Hampshire Family Law Attorney To Find Out More
Marriage dissolutions involving business holdings and partnerships may be complex. A seasoned New Hampshire divorce lawyer can offer valuable guidance for safeguarding these interests and overcoming the challenges of the divorce process. To learn more about dividing a professional practice in a divorce and acquire assistance in divorce-related legal matters, contact Friedman & Bresaw, PLLC at (603) 707-4800 today.
Frequently Asked Questions About Splitting a Professional Practice During a Divorce
The following frequently asked questions address common legal issues related to dividing professional practices, business interests, and asset division under New Hampshire divorce law.
What Is a Professional Practice in a New Hampshire Divorce?
A professional practice in a New Hampshire divorce refers to a business entity owned by licensed professionals, such as medical or legal practices, subject to asset division under RSA 458:16. Professional practices may include ownership interests, income streams, and goodwill, all of which New Hampshire family courts may evaluate when determining equitable distribution of marital property.
What Are Business and Partnership Interests in Divorce?
Business and partnership interests in divorce are ownership stakes or financial rights in a company, partnership, or professional practice that may be divided under New Hampshire’s equitable distribution laws. These interests can include profit rights, decision-making authority, and liability exposure, with valuation often dependent on governing agreements and financial records.
How Does New Hampshire Divide Business Interests During Divorce?
New Hampshire divides business interests during divorce by applying equitable distribution principles under RSA 458:16 to fairly allocate marital property between spouses based on relevant financial and personal factors. Courts in New Hampshire often assign the business interest to one spouse while awarding compensatory assets or payments to the other spouse to maintain fairness.
What Is The Difference Between Marital and Separate Property?
The difference between marital and separate property in New Hampshire divorce law is that marital property includes assets acquired during marriage, while separate property includes pre-marriage assets, gifts, and inheritances. New Hampshire courts evaluate when and how property was acquired to determine whether business or partnership interests are subject to division.
What Factors Do New Hampshire Courts Consider in Asset Division?
New Hampshire courts consider factors such as marriage duration, financial and personal circumstances, income, liabilities, and future earning potential when determining asset division under RSA 458:16. Courts may also evaluate contributions to asset growth, tax consequences, custodial responsibilities, and the existence of prenuptial or postnuptial agreements.
How Are Professional Practices Valued in Divorce Proceedings?
Professional practices are valued in New Hampshire divorce proceedings through financial analysis, including appraisals that determine fair market value, income potential, and asset composition of the business. Accurate valuation helps New Hampshire courts equitably divide marital property and assess appropriate compensation when one spouse retains the business interest.
Can Prenuptial Agreements Protect Business Interests in Divorce?
Prenuptial agreements can protect business interests in New Hampshire divorce cases by clearly defining whether a professional practice or partnership interest is treated as separate property under state law. Courts generally enforce valid agreements entered voluntarily and fairly, which may reduce disputes and clarify asset division outcomes.
How Do Courts Handle One Spouse Keeping the Business?
Courts in New Hampshire typically handle one spouse keeping the business by awarding the professional practice to that spouse while providing the other spouse with equitable compensation. This approach helps preserve business operations while ensuring fair distribution of marital assets under RSA 458:16.
How Can Friedman & Bresaw, PLLC Assist With Dividing a Professional Practice?
Friedman & Bresaw, PLLC may assist with dividing a professional practice in a New Hampshire divorce by explaining asset division laws, evaluating business interests, and outlining potential legal options. Consider visiting with an experienced attorney at Friedman & Bresaw, PLLC to learn more about available legal options.
