As a business owner going through a divorce, you’re not just experiencing the emotional turmoil of a split. You also risk losing the company you’ve worked so hard to build.
However, with the right strategies and guidance, you can protect your business from the fallout of divorce and division of property proceedings. In this blog, we’ll explain how you can safeguard your business and ensure that your personal life doesn’t become a professional liability.
Protecting business assets during the division of property
One of the most effective ways to achieve this feat is by entering into a pre- or postnuptial agreement with your partner. While it may seem pessimistic to have these discussions, these agreements can protect your business in case of divorce.
These contracts protect the assets you bring into your marriage. They list all the property and business assets you and your partner own, and spell out what should happen to them if you want to end the marriage. Even though they are not immediately legally binding, they can carry a lot of influence in divorce proceedings if you create them carefully and early on.
In addition to pre- and postnuptial agreements, maintaining separate business accounts can be especially helpful in protecting business assets. This habit establishes a clear distinction between business and family funds, aiding the valuation process, expediting legal proceedings and minimizing stress.
Detailed record-keeping of business assets, activities, contributions and investments is also essential. This approach enhances transparency throughout divorce proceedings, supporting valuation efforts and leading to a fairer settlement.
How can a lawyer help?
If you’re facing divorce and are concerned about the impact on your business, don’t wait until it’s too late. Consider seeking the guidance of a compassionate family law attorney who can help you develop an effective plan to protect your business and secure your future.