If you own a business and are in the process of getting a divorce, you might be worried about its wellbeing and what will become of it after its visit to the chopping block. Even if you started the business before you and your spouse got married, many events that happened during the marriage could determine what ultimately happens to it once you begin dissolving your marriage. That said, there are some steps you can take to protect your business and safeguard your future.
The Business is a Marital Asset
If you built your business during the marriage or used marital funds to support the business, the business could fully be a marital asset or partially, depending on the circumstances. If your spouse invested some of his or her own money into the business or even provided free labor during the marriage, this could also turn your business into a marital asset.
For those who own a business and have yet to tie the knot, it is wise to consider entering into a prenuptial agreement, which will allow you and your future spouse to agree on how you plan to divide your assets in the event of a divorce. This does not mean you expect the marriage to fail, but rather that you are taking the proper precautions to protect it if the relationship does not work out in the end. If you have already said, “I do,” and still would like to protect your business, you could also protect your business with a postnuptial agreement, which will essentially serve the same purpose as a prenuptial agreement.
If you did not get a prenuptial or postnuptial agreement to protect your business and find yourself in the middle of a divorce, you might still be able to save your marriage. To keep the business in your possession, you can offer your spouse other assets in return. This might also be beneficial for your spouse, especially if keeping the business intact would make you more capable of making any necessary child support or alimony payments. However, if your spouse refuses to cooperate, it is possible that the court might persuade him or her to leave the business intact, so you are able to remain financially solvent.
If your business is considered separate property and you are able to prove it, it will remain entirely yours throughout the divorce process, regardless of what happens with the rest of your marital assets. During a divorce, only marital property and other items purchased throughout the marriage with marital property would be subject to division.
Experienced Divorce Attorneys in Riverside County
If you are a business owner and currently in the process of getting a divorce, you need to take all the proper measures to ensure your business remains protected and intact. At Hanson, Bradford & Hanich, our family law attorneys in Riverside County are dedicated to assisting clients throughout their divorce while protecting their interests and offering the compassionate legal assistance that is needed during this undoubtedly difficult time. Backed by over 50 years of combined legal experience, you can trust that your case will be in good hands with us.
Get started on your divorce case today and contact our law office today at (951) 687-6003 to request a free initial case evaluation with one of our knowledgeable attorneys.