Divorce is difficult on anyone when it comes to emotions and finances. But for anyone involved, it can become even more complicated when one or both of the spouses owns their own business.
When one owns a business, it becomes one of the most financially valuable assets in your name. For everyone involved in the business (managers, employees, etc.), a divorce can have an impact in some way or another. There are ways to minimize the impact of a divorce on a business, and some of them should be considered before divorce is even imminent, at the beginning of your marriage or when you first open the business.
Early Documentation and Agreements
Completing an operating agreement, or a partnership or shareholder agreement would protect the interest of other owners of the business if one owner were getting a divorce. These agreements would help them maintain more control of the business.
An experienced Glendale divorce attorney will be familiar with managing the personal and financial conflicts in divorce cases. Seeking legal counsel can help reduce the impact of divorce on your business.
A prenuptial agreement (signed before marriage) and a postnuptial agreement (signed after marriage) can predetermine how marital assets are distributed after a divorce, including a business. A prenuptial agreement is where the couple may decide ahead of time which portions of their business will be considered property that can be separated or what will be considered marital property in the unfortunate event of a divorce. A postnuptial agreement can help establish which portion of the business each spouse will get if they had chosen to become business partners after the marriage.
If neither of the above agreements exists, the parties may be able to hire a financial expert, representing both of them, to value the business and help determine the best steps to take to keep the costs down when it comes to dividing assets.
To learn more about how you can take preventative measures for protecting your small business in the event of a divorce, contact a Phoenix divorce attorney at Sampair Group for a free consultation.