Business Ownership In Divorce
Aside from your home, your business is your most valuable asset. If you are not protected or prepared for divorce, it can have a major impact on your business. No one wants to pay half of the value of their business to their spouse or lose any amount of business ownership in divorce.
Knowing the difference between marital and separate property is a good start. Some factors that determine whether a business is marital or separate property include when the business was acquired (or started), whether the business was started with joint funds, how many hours of labor each spouse put into the business, and investments made into the business.
Putting protections in place before a divorce occurs is also a crucial step to shield your interests and investment from being torn apart through asset distribution. One way to protect your business is with a prenuptial or post-nuptial agreement. Paying yourself a salary, keeping business and personal finances separate, getting a buy/sell agreement, setting up a partnership or LLC, and putting the business into a trust are also great ways to protect your business interests during a divorce.
King Law Firm Attorneys at Law, Inc. understands the complexities that come with protecting business ownership in divorce. If you own a business and are having difficulties fighting the valuation or would like to protect your business interests in case of a future divorce, give us a call for a consultation.