How Business Owners Can Protect Their Business During Divorce

Divorce is never easy, but when one spouse runs a business, the process can get even more overcomplicated. Regarding divorce, business owners have particular concerns, and it is essential to take the necessary actions to safeguard the business and its assets.

Business owners should understand that their business is a marital asset that can be divided. This implies that the business’s worth and the ownership rights of both spouses must be evaluated. Get help from experienced lawyers and hire them by searching ‘divorce lawyer near me’ on the phone. 

How business owners can protect their business during divorce

The court will examine both spouses’ contributions when dividing the firm’s assets. For example, if one spouse was in charge of the firm’s day-to-day operations while the other was a silent partner, the court may give the spouse who ran the business a bigger share of the business’s worth.

In addition to distributing the business’s assets, the court may order one of the spouses to purchase the other’s part in the business. It is done when one of the spouses desires to retain ownership of the business. In this case, the court will order the other spouse to pay a set amount in return for their business portion.

A prenuptial agreement can also help company owners secure their assets in the case of a divorce. To be legally binding, these agreements must be prepared by a knowledgeable Miami divorce lawyer. A prenuptial agreement can outline how the firm’s assets will be shared if the couple divorces, saving both spouses time and money.

You need a proper business valuation.

One of the most essential elements of dealing with your business during your divorce is ensuring you get fair and accurate evaluations. If your company is considered marital property, it will be one of many assets that should be distributed equally. If your business is not valued correctly, you will likely lose it after your divorce. 

Protect the business assets with trust.

You may have heard that putting your business in trust helps protect it through a divorce. In some cases, this may be an appealing option. Transferring a business under a trust means you technically no longer own it. Instead, it is being maintained for the benefit of the trust’s beneficiaries. This will prevent it from being considered marital property and distributed as such after your divorce.

However, putting your company in a trust is not for everyone, and you should consult with an attorney before proceeding.

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