Going into a marriage with a business is a major deal because there’s a chance that the company can be impacted if you go through a divorce. The absolute best way to protect the company is by using a prenuptial agreement that includes the terms of what will happen to the business. Other options, such as a trust, might be possible so it’s always best to find out exactly how the law will view your situation.
In the absence of this, it might still be possible to protect your company from being ripped apart in a divorce. Consider these options if you’re a business owner who wants to take steps to protect your business in case you divorce.
Keep the business finances separate from the marital finances
One of the best things that you can do if you don’t have a prenuptial agreement is to ensure that your company is self-sufficient. You shouldn’t ever comingle household funds with business funds. Keeping the business completely separate helps to show the court that it’s not marital property.
What if you didn’t take steps to protect the company and end up in a divorce?
If you know that there’s no way you can fully protect the company, you should have a valuation done at the start of the divorce. This gives you a dollar figure of what the company’s worth as it stands. You can use this information to try to buy out your ex if it seems they’ll end up owning the company with you. You might be able to give your ex other assets so you can keep the business after the marriage ends.
Discuss your case with someone familiar with business owner divorces so you can ensure that you know the options that you have in the matter. Deciding how to handle these matters early in the case is important, so don’t waste time once you know that you’re getting divorced.
