An impending divorce can be a source of hardship in your personal and professional life. All the more so if you are a business owner who is passionate about protecting your company.
In most cases, a business is a marital asset that is subject to property division laws during a divorce. While a well-planned prenuptial agreement could protect your business, there are still other things you can do to maintain your assets if a prenup is not in place.
1. Form a separate business structure
Forming your business as an LLC or corporation will legally separate the business’s assets from you as an individual. While this is most effective if you incorporated before getting married, an LLC may still protect your assets from divorce going forward.
2. Remove your spouse from the business
If your spouse is directly involved in your business, you may wish to remove them from the company well before divorce gets put on the table. The greater their role and the longer their involvement in the company, the better their chances of claiming a large part of the business when a split occurs.
3. Appraise the value of the business
It is important to know the overall financial value of your business before a divorce becomes final. If there is no other beneficial arrangement, your best option may be to buy out your spouse’s share of the company or sell off the company altogether.
Business can be a hot point of contention during divorce proceedings. If it seems that conflict is on the horizon, a mediating lawyer can help pave the way for an amicable settlement in your divorce.