The best news about owning a business is that if you have created an LLC or own a corporation, they will help you protect your business assets. This is great news if you created the business before marriage and will help protect you in case of a divorce. Being a small business owner means you have a lot to worry about; fear of losing a business can also be very stressful.
Key Takeaways
In many cases, if you have a business you are worried about losing, it is best to sit down with an attorney and create a prenuptial agreement together. This provides you extra security when talking about any of your assets, even if you think you already have protection. There are other steps you can take to “divorce-proof” your business.
Divorce can happen to the best entrepreneurs, and it is important to protect everything that is important to you. One of the first steps in a divorce is dividing all of the assets. If your partner feels like they deserve to remain in the business you own or want to collect money from the business, a divorce can get tricky.
Steps To Divorce-Proof Your Business
Luckily for you, there are a few steps you can take to help protect your business from being a battle in the divorce field. The divorce rate is increasing, and many people do not take the necessary precautions. Here are some tips to keep in mind before marriage, while running your business, and what happens after the divorce.
Talk To An Attorney
Before getting married, always be sure you have an attorney you trust. Building trust early with an attorney can help settle any confusion. This will also give you time to work on a prenuptial agreement.
Keep Accurate Records
You should always keep your personal life, and business life separated. Keep accurate business records of all expenses and all family records of expenses. Never combine the two. This can make things incredibly messy in the case of a divorce.
Don’t Let Your Spouse Be a Business Partner
If you started this business before marriage, keep your business and love life separate. If you involve your spouse, they are likely to get assets in a divorce. The longer they work with you and make company decisions, the harder it will be to separate later on.
Sacrifice Other Things
If you are in the middle of a divorce and absolutely cannot give up your business assets, sacrifice other assets to protect your company. This may only happen in very extreme cases, but it is more likely than you think.
Should You Keep An Attorney On Stand By?
In most cases, as long as you follow the tips above, you will be okay in the unfortunate event of a divorce. You should always talk to an attorney before marriage to protect your valuable assets, and once you decide to get a divorce go back to the attorney to make sure everything is covered.
Contact Petrelli Previtera, LLC To Discuss The Circumstances Of Your Divorce And Find Clarity.