Getting divorced can be challenging under any circumstances, but the matter can be even more intricate when a family business is involved. If improperly handled, your marriage dissolution could lead to serious financial implications for you and your business, and it might threaten the viability of your business’s continuation.
Tips for protecting your business in a divorce
With that in mind, you need to know how to protect yourself and your business throughout your divorce proceedings. Let’s look at some ways you can do that:
- Utilize a prenuptial or postnuptial agreement to specify your ownership stake in the business and how the business will be handled in the event of divorce.
- Turn to an appropriate valuation methodology when figuring out what your business is worth.
- Pay yourself a fair salary from the business so that it’s harder for your spouse to claim that those funds should be subjected to the property division process and it’s more difficult for them to gain a larger portion of the business.
- Take your spouse away from business operations, even if that means firing them, so that they can’t argue that they’re integral to the business once your divorce kicks off.
- Think about sacrificing other marital assets so that you can retain the business post-divorce.
- Consider buying your spouse out in a way that’s affordable, such as making monthly payments over a set period of time.
Create a legal strategy that protects you and your business
There’s a lot at stake in your divorce. That’s why adequate preparation is key to your post-divorce success. Therefore, to position yourself for the best outcome possible under the circumstances, you may want to start thinking about the legal arguments that can make now so that you can confidently navigate the process and secure the outcome you deserve.