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Understanding how getting a divorce could impact a business

| Jan 8, 2015 | Uncategorized |

Florida entrepreneurs may be interested in some useful tips that might help to protect a business in case of a future divorce. The National Marriage Project at the University of Virginia estimated in 2010 that almost half of marriages end in divorce in the United States, and those percentages grow in second marriages. Owners of businesses who have not properly protected their assets may find that their business is affected once a divorce proceeding begins.

Couples who marry are advised to file a prenuptial agreement before their wedding if a business is a factor; not doing so could mean that a percentage of the business is at risk. Even if the business is smaller in the beginning of the relationship, not foreseeing a future divorce could mean that a spouse receives shares of it once it has become a much larger company.

Experts advise owners of businesses to implement specific practices to protect their companies from divorce regardless of whether there are any indications that the marriage is heading into trouble. One way to safeguard business assets is for the business owner to take home a reasonable salary and leave a paper trail. Ensuring that business expenses are kept separate from personal finances is also recommended. Keeping one’s spouse out of business decision-making and daily operation may help a business owner prove that they are the sole owner of a company.

Asset division during a divorce where a small business is involved can be complicated. Business owners may wish to consult a lawyer in order to determine the methods that will best protect their business.

Source: Entrepreneur , “How to divorce-proof your company “, Carol Tice, August 08, 2011

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