If you go through the divorce process, you can expect it to alter your personal life in a number of ways. For example, it may change the way you raise your children. Just the same, it can impact your finances.
As a business owner, it's important to understand the impact divorce can have on your company. If you're not careful about the steps you take, you could put your business at risk.
Before you get married
Before you tie the knot, think about the possibility that you could divorce in the future. This will help you take steps to protect your business in the event that this happens.
For example, through the creation of a prenuptial agreement, you can add language to protect your business in the event of a divorce.
Also, if you started your business before your marriage, the court may consider it individual, not marital, property.
Business founded after marriage
Your situation is different if you started your business after tying the knot. The same holds true if your spouse is part of your business, such as a partner.
If you have a prenuptial agreement, you're covered. This will outline how to deal with the division of the business in a divorce.
If you don't, the court is likely to consider the business marital property, meaning it will come into playing during the property division process.
Did you miss your opportunity to protect your business?
You thought nothing would ever go wrong with your marriage, so you never considered how to protect your business. But now you find yourself in the middle of a divorce and wondering what's to come.
Even if you've missed out on some opportunities to protect your business in the past, it doesn't mean you're out of luck. For example, if your soon to be ex-spouse has no interest in your business, maybe because it doesn't hold much value, you may be able to maintain complete control.
If your business is at the center of your divorce, it's time to review your circumstances to ensure that you understand exactly what you're up against. Only then can you take steps to protect your business and your legal rights.