own your own business and plan to divorce your spouse, there are a few things that you should first consider. Divorce
can be complicated for business owners because it puts their company in
a compromising position. From losing your business to being ordered by
the court to form a partnership with your ex-spouse, there are number
of negative consequences that can arise if you are not prepared for your
divorce proceedings. This is why it is crucial to make sure that your
business interests are fully protected before you file your divorce papers.
In this blog, we explain how your
divorce can impact your business and what you need to do to protect it.
Depending on your situation, your spouse might be legally entitled to half
of your business and assets. When your finances are analyzed as part of
the divorce, it might be deemed that your business falls into the category
of marital assets. Savings, real estate, debts, and certain business ventures
can all be considered marital assets. However, there are exceptions to
this, which includes:
- Assets acquired prior to the start the marriage
- Assets acquired after the marriage ends
- Assets protected by a prenuptial or postnuptial agreement
- Gifts and inheritances
If you first started your company after you were married, it is generally
counted as a marital asset. If you started your company before you got
married, it should be disqualified from the marital assets. If your business
was successful during your marriage and saw solid growth, its marital
value will increase. If you have put money from your business into a joint-savings
account, it will also be considered part of the marital property. Investments
and retirement accounts that you have contributed to during the course
of your marriage can also be divided during the divorce proceedings.
The following are two strategies you can use to protect your business interests:
LLC’s & Corporations: Making your business into a limited liability company can be one way
to keep your assets from being labeled as marital property. You can also
form a c-corporation or an s-corporation to hold your business assets.
Trusts: A trust is a separate legal entity that can be used to hold your business
assets. Talk to an experienced attorney about which type of trust will
work for your particular situation.
Consult With a Business Divorce Lawyer Today
At Hanson, Gorian, Bradford & Hanich, we know that divorce is stressful
enough, and the last thing you want to worry about is losing the business
that you have worked so hard to establish. That is why our legal team
is committed to protecting the rights of our clients and helping them
resolve their divorce disputes. If you are a business owner who is thinking
of getting a divorce, you should consult with our Murrieta divorce lawyers.
We have the skills and resources that you need to secure a positive outcome.
Let us get to work for you today.
Contact us to schedule a free consultation
with our legal professionals in Murrieta.