Business owners have a lot of things to consider in day-to-day life. This can get even more complicated should trouble in a marriage occur. If you get a divorce, your business could be used. All of the blood, sweat and tears that went into creating your business could be subject to division during your divorce settlement, even if your spouse had no part in creating or running the company.
Going through a divorce is complicated enough without throwing arguments and arbitration about your business in the mix. Is there a way you can protect your business before a divorce is even on the table?
How are businesses valued?
Deciding how businesses are divided during a divorce can be complex. You may need an attorney to help you navigate the process.
Even if you created your business before your marriage, any growth that occurred during your marriage is still considered marital property. This means it can be divided during your divorce.
How can you protect the business?
Fortunately, there are ways you can protect your business in the event of a divorce. However, you may need to take these steps pretty far in advance before divorce is even being considered.
One of your options is to create a prenuptial agreement. This is one of the more effective measures a business owner could take. In a prenuptial agreement you can declare that your business is separate property and cannot be divided during a divorce. Another option is to create a post-nuptial agreement, if you did not think of creating a prenup, before marriage.
A final option is to transfer ownership of your business into a trust. This is a particularly complex process, however and you should consult an attorney in order to do this.
Should your marriage fall apart, protecting your business may be one of your top priorities. Fortunately, there are steps you can take to divorce-proof your business before your divorce is even filed.