Whether it was their idea to divorce or not, a business owner needs to account for the threat a divorce poses to their business. The steps a business owner can take before or during a divorce can have a major benefit in their future, and the future of their business.
The ex-spouse of a business owner can stand to earn a substantial amount from a divorce. Thankfully, the business owner can take several steps to defend themselves through a divorce.
Have a prenuptial agreement
While there is little someone can do about having a prenuptial agreement near the end of a marriage, starting a marriage with one can do the lion’s share of the work in defending a business and its owner. An airtight prenuptial agreement can keep an ex-spouse from claiming half of a business who did not contribute anything to it.
Keep your business to yourself
A court can view business as marital property if both spouses were involved in running it during the course of the marriage. The less involvement a spouse has in the business, the less of a claim they can make for a share of it.
Be sure to provide yourself with a fair salary
An ex-spouse can try to claim that all of the business owner’s money went into the business, which means the ex-spouse deserves a larger percentage of a business. Competitive pay for a business owner can diminish the value of this claim.
Create an LLC
Even a sole owner of a business can form an LLC. When a business owner can take the precaution to protect business assets like a company vehicle. An LLC, trust, or corporation can protect many major assets of a business, provided that no one uses marital assets to purchase the business property.
Get an attorney
The best form a defense business can have in a divorce is an experienced divorce lawyer. Their guidance can help protect the future of the business owner and the business itself.