Business owners going through a divorce in Florida or anywhere around the country will understandably worry about the state of their business after completing the divorce. Thus, it is important to understand what you can do to lessen the impact of a divorce on a business before signing legal agreements.
Prenups & postnups
The best way to ensure that your business remains unchanged is to have your spouse sign a prenuptial agreement before finalizing the marriage. Prenups may have legal wording that prevents your spouse from taking half of your business in the event of a divorce. A postnup is also an option if you are already married.
Purchasing your spouse’s ownership
What if no prenups or postnups are present at the time of a divorce? Is that it? In some states, you are actually legally required to give your spouse half of all marital assets. Fortunately, you can do something to keep control of your business or lessen the impact of the loss of ownership. Purchasing your spouse’s half of the company is possible and could be arranged during the divorce proceedings. If your spouse agrees, you keep total control of your company.
Don’t use marital assets to invest
If you’re thinking of opening a business, experts recommend not to use marital assets such as a home mortgage to open your business. This is because once you do that, your business becomes marital property. Instead, use your own funds to obtain the capital for your new company.
Divorce is no doubt a complicated process, especially if there is a business involved. Thus, it is imperative that you obtain the services of an attorney who specializes in personal businesses. An attorney may provide you with multiple options for lessening the impact of the divorce on your business.
