If you are a business owner, getting a divorce may be even more complicated than usual. While you have to consider your family, finances and the emotional effects of divorce, you also have to think about your company and its future. Navigating a divorce when there is a business involved can be complex and stressful. Just like with other assets and finances, your business may have to be divided between you and your spouse during a divorce.
Fortunately, there are ways you can protect your business from the toll of your divorce. There are a few steps you can take before your divorce is even filed to help guard your business from the effects of an upcoming divorce, letting you keep your company intact and thriving. What methods are there to do this?
Pre or postnuptial agreements
Creating a pre or postnuptial agreement is one way you can protect your business from a divorce. Pre or postnuptial agreements create a legal definition about who owns what property after a divorce. You can include your business in these agreements. Before or during your marriage you can work with an attorney to set up an arrangement with your spouse that dictates what happens to your business in the event of a divorce.
Another legal option is to create a trust. You can transfer ownership of your business into this trust which will then protect your business from a divorce. Trusts are complex and have restrictions, so it may be best to consult an attorney to do this. However, this is a good way to divorce-proof your business.
Going through divorce
If you did not take any of these steps in advance, there are still ways you can protect your company even during a divorce. In most situations, your spouse will only want the financial value of the division of your business. If this is the case, you can offer up other assets that are of equal value such as stocks or your home. You may be able to negotiate an alternative offer, like this, instead of diving your business.
In all cases, it is best to consult an attorney during this process so you can be sure your company is legally protected in the best way. Protecting your business might be one of your top priorities as you go through your divorce. Fortunately there are a variety of ways you can do this, such as the ones mentioned above.