January marks one of the busiest times of the year for a divorce practice. Those contemplating a divorce have held their noses through the holidays, and are now ready to proceed. From now until the receipt of tax returns, divorce filings will be rising throughout the state of New Jersey; and, I suspect, the country as a whole.
Business Fiscal Years
In America, we consider January the start of a new year. As a divorce lawyer, that continues to track with my experience serving clients throughout New Jersey. But as business owners (and accountants) well know, a corporation’s year may not be January through December. Many companies choose to operate on a fiscal year, which may or may not match a calendar year. For example, a company’s fiscal year may be from May through the end of April. In other words, businesses may not operate under the common Gregorian calendar, but rather choose their own unique calendar period to track time. As you can imagine, this can create subtle differences in a personal divorce.
The biggest thing to remember when it comes to fiscal year’s for business entities, is that it may create differences in when certain financial or accounting statements are made available. When conducting discovery, and in particular reviewing discovery or crafting discovery questions, it is important to consider the choice of fiscal year. Whether an “ISO” year, “4-4-5 calendar,” or “broadcast calendar” method are chosen, there will be certain unique intricacies to consider in reviewing financial documents.
Such differences are most apparent in reviewing tax documentation. For instance, a corporate tax return is generally due by the 15th day of the fourth month following the end of a corporation’s tax year. Knowing the tax return dates will assist in providing the most accurate data for an analysis such as for business valuation.
Although a somewhat subtle point, knowledge of corporate calendars, fiscal or otherwise, will assist you in navigating the divorce process.
Conclusion
Whether your divorce involves business interests or not, our firm stands ready to assist during these busy and momentous times. Wishing you a Happy New Year, even if your company’s “new year” is not yet here, and wishing you a happy 2025.
Partner with Carl Taylor, Esq.
Ready to Find Your Happily EVEN After? Call Today at 609-359-3345 to Schedule a Confidential Consult and Receive a Free Copy of the 3rd Edition of my 200+ page book, Happily EVEN After: The Guide to Divorce in New Jersey.