Divorces are never easy, but they tend to get very complicated when businesses and properties are involved. As a business owner, you are definitely keen on protecting your investments and are seeking ways to do so. If it’s any consolation, you are not alone. Many people who are considering filing a divorce (or whose spouses are considering a divorce) worry about the businesses they own.
Wanting to know how the divorce will affect your business is realistic, after all, you have put in lots of time in the company to ensure it succeeds and the worst thing you’d want is to end up having your ex as your business partner. Of course, that’s the last situation you’d want to find yourself in. That’s why it is essential to approach everything with an open mind. In this article, we will tell you how to protect your business in the event of a divorce. But first, if you are reading this for the sake of knowledge and are not on the verge of a divorce, we suggest that you go the contract route.
It’s normal to want to share everything with your partner when love reigns. However, the same way you protect your health with life insurance even when you aren’t sick is the same way you should protect your business even when you are happy in marriage. Having a formal agreement can go a long way in the event your marriage fails to work out as you’d hoped for. If you wouldn’t want to split your business after a divorce, then you can come up with guidelines that specify that.
A prenuptial or postnuptial agreement can state that your business is separate property and not entitled to division. You can also specify the percentage share of the business that will be marital property and which spouse can buy the other out in the event the marriage ends. Basically, you need to be clear about every single item to cut out any ambiguity in case of a divorce.
If you are on the verge of a divorce and hadn’t drafted any contract, don’t fret. There are a few things that you can do to protect your business. First, you’ll need to establish yourself as the only owner of the company and ensure that all papers indicate that ownership can’t be moved in case the marriage dissolves. Be sure to maintain all records with regards to finance source and not to mix personal and business expenses. If your partner works in the business, you should pay them for their services (at the market rate). You should also pay yourself as per the market standards, so you don’t end up paying more for support.
If you aren’t sure about where you stand in all these or don’t know how to go about the process, its best to talk to a business owner divorce attorney Ohio who will help you protect your assets. These lawyers deal with such cases regularly and have the experience to help you get the most out of the process.