Business Ownership In Divorce

Your business stands as one of your most valuable assets, second perhaps only to your home. Being unprepared or lacking protection in the event of a divorce may significantly impact 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 fundamental starting point. Several factors come into play when determining whether a business is considered marital or separate property. These factors include the date of business acquisition (or establishment), the use of joint funds to initiate the business, the amount of labor hours each spouse put into the business, and the extent of investments made into the business.

Implementing protective measures before a divorce occurs is crucial in safeguarding your interests and investments from potential upheaval during asset distribution.

Establishing a prenuptial or post-nuptial agreement is one effective method to protect your business. Paying yourself a salary, maintaining a strict separation between personal and business finances, securing a buy/sell agreement, forming a partnership or LLC, and placing the business into a trust are additional strategies that serve to protect your business interests during a divorce.

King Law Firm Attorneys at Law, Inc. recognizes the complexities involved in protecting business ownership in divorce. Our team is dedicated to providing tailored legal support. We will help you clearly and confidently navigate the intricate landscape of business ownership in divorce. If you own a business and have encountered the challenges related to business valuation in divorce proceedings, or if you seek to fortify your business interests to preempt future divorce implications, call for a consultation.

King Law Firm Inc.
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