Starting a business requires entrepreneurs to make many sacrifices. With long hours of work, a new business can cause issues in any marriage. For such reasons, it’s important to protect your business from the possibility of divorce. Although it’s not something any couple wants to think about, it’s vital to take the necessary steps to ensure that a broken relationship won’t crumple your business. The Colorado Springs divorce lawyer at Drexler Law provide tips on steps you can take that will protect your business during divorce.
Maintain Detailed Financial Records
A great tip is to keep your business separate from your family’s finances. For example, you don’t want to take money out of your mortgage to purchase a new business office. Mixing your family’s and business’ finances can make things complicated during a divorce. You should also keep a detailed financial record of your business and your home to demonstrate that the assets are separate in the event of divorce.
Provide for Your Family
If you’re extremely frugal about your spending with your family to boost your business, it can later become an issue during a divorce. The judge can claim that your spouse should be entitled to more company assets.
Sacrifice Other Assets
If you want to obtain full ownership of your business, you might need to sacrifice other personal assets to do so. In most divorces, marital assets are combined and divided. Therefore, you can negotiate with your spouse with the help of an attorney to sacrifice other assets to keep full ownership of the business. Other assets may include stocks, retirement accounts, property, vehicles, etc.
Place Your Business in a Trust
When you place your business in a trust, it keeps the business from being counted as marital assets during a divorce. Before you make this decision, it is best to consult with a professional to determine if it’s the best option for you.
If you need legal guidance during your divorce to protect your business, our team is here to help. Contact our Colorado Springs divorce attorneys today at (719) 259-0050 to schedule a consultation!