You are an entrepreneur with a successful small business. Now, for some reason, you may be considering divorcing your spouse. You may ask yourself what may happen to the business that you built with your blood, sweat and tears if you do decide to get that divorce? There are many things to ponder when it comes to continuing to run that business.
Although it may be a challenge, there are ways to protect your assets and small business from having to go through the ringer if you decide that divorce is the best option for you. Divorce is never easy. It can also be even more difficult if you have a business to consider.
Ways to save your business in a divorce
When you look at the possibility of getting a divorce, you must ask yourself questions like: “will I have to divide my business with my spouse?” However, there are things you can do to secure your business’s future without having to worry about sharing it with your spouse. They include:
- Prenuptial agreement- this is an agreement signed by you and your spouse before you get married that says what will happen to your assets and income if you divorce, separate or die.
- Postnuptial agreement- this is an agreement signed after your marriage to settle your assets or affairs.
- Be sure that your spouse is not working with you. If they are, they may be more inclined to want to continue to work there and want a piece of the business.
- Another possible option is using a shareholder, partnership or LLC or a buy-sell agreement. This is a good way to protect you as the business owner.
- Pay yourself a competitive salary- if you do not pay yourself, your spouse could claim that you did not bring any income home to the family but instead invested in the business.
Divorce is never easy for anyone involved. It is good to know what options you have as a business owner, if you are considering divorce. You can be in control and fight for the future of your business.