When a divorce is in your future and you’re a small business owner in Florida, you may realize that calling it quits on your marriage can have a significant and damaging effect on your finances. A divorce attorney may help you with the challenges facing business owners who have to divide their assets with a spouse.
How does divorce actually impact a small business?
If you start the business after you are married and don’t have a prenup in place, the business itself will likely be considered marital property that is split during the divorce. Splitting the business may mean that your ex will receive stock during the divorce or be awarded a position as partner.
Protecting your business
If you own a business, then it’s important to protect your assets. Your best option is to have a prenup or postnup in place before divorce is ever on the table. You can also help yourself out by keeping business finances separate from your home budget. For example, if you used some of your soon-to-be-ex’s money to finance your operation at times, the court may immediately think he or she is entitled to part of it. You can also protect your business in advance by putting aside funds such as an insurance policy that can then be used to liquidate the business if part of it needs to be sold in the breakup.
It’s not too late to save your business
If you’re a small business owner who is already in the process of divorce or sees one looming in the near future, all of this information may seem overwhelming and scary. Thankfully, there are still options. If you are willing to forfeit your business, outright selling it and then splitting the money may be the easiest way to navigate the divorce; however, few people want to give up on a business they’ve worked hard to build. You can work with the courts to give up other assets you have to stay in control of your company, sell stocks so that the money can then be awarded to your ex or offer your ex garnishment of your wages to keep your business in your own control. You can also work within the court system to prove to the judge that the business was owned and funded exclusively by yourself.
There is hope to save your business and protect the company you’ve worked hard to build. Having an attorney on your side might help ensure that even if the business is split, you get the largest share possible.