When you have a business that is your source of income but also your pride and joy, one of your first priorities will be seeking to protect this in the event of a divorce.
Although it can be difficult to foresee a divorce and prevent it from occurring in the first place, it is possible to take measures to make sure that your business assets and the empire that you have worked so hard to build will not be compromised in the event of a divorce. The followings are some ways that you can protect your business assets from being divided.
Prenuptial and postnuptial agreements are the best choice for peace of mind
They may be widely considered unromantic, but prenuptial agreements are the best way to ensure that you will never have your hard-earned assets taken away from you. A marriage should be based on love and never on possessions; therefore, prenuptial agreements make sure that love is always the focus. If you are already married but did not arrange for a prenuptial agreement to be enforced, it is possible to sign a postnuptial agreement in order to gain peace of mind for the future.
Consider where you place your assets
If you set up a living trust, you are able to place your small business into this trust. This then means that it is protected from being a divisible asset in the event of a divorce.
Making sure that your business is protected in the event of a divorce is extremely important. As a business owner, you should conduct thorough research to understand how your business assets can be protected. An experienced attorney can provide advice and guidance.
Source: FindLaw, "3 Ways to Protect Business Assets in Divorce," accessed March 30, 2018