How Can I Protect My Business Assets in a Divorce?
Any shared property has to be split up during a divorce, and that could include business assets depending on how your company has operated and when it was established. If you want to make sure that you are doing everything that you can to protect your business assets and keep what you have built, then you should seek out the help of Chatham divorce business valuation attorneys from our law firm.
When Could My Business Assets Be Considered Marital Property?
Your business assets could be considered marital property in a few different scenarios. They may be considered shared assets if:
- You established the business during your marriage
- Your spouse has played some kind of role in the business
- You have used joint marital funds in your business
In cases like these, it’s tough to say that your business is not a martial asset. If you want your business to be considered separate property, it usually has to be something that you established before your marriage began, and keeping your spouse and your shared money away from it is a necessity.
What If My Business Grew While I Was Married?
Even if you do all that and keep your business separate, there is still one thing to worry about. Your spouse could try to claim a part of the business and its assets if your company grew while you were married. They could say that they stayed home and took care of the kids and housekeeping duties, giving you the time and energy to grow your business. As a result, they are entitled to a share.
We can help you argue back against this line of logic. It helps if you have detailed business records and any other documentation that shows that your spouse had no active role in your company.
What Type of Agreements Could Protect My Business Assets?
There are some agreements you could make that would protect your business assets. Notable examples include:
Prenuptial agreement: Commonly called a prenup, this agreement outlines what happens to you and your spouse’s assets in the event of a divorce. It can be used to determine what will become of your business if it was established before your marriage began.
Buy-sell agreement: This determines what happens to a business if the owner’s status changes at all. A divorce is counted as a change. Such an agreement could limit a former spouse’s ability to take any share of the business and its assets. It could also allow the current partners to buy shares of the business back.
Talk to Our Legal Team Today
If you are ready to do anything that you can to protect your business assets, you need to contact Lazor Rantas, PC. We can schedule a consultation and tell you more about your options and what we can do to help you fight for the best possible outcome. Talk to an experienced family law attorney today.