by Stephen Durbin and Associates
A business can often see some ups and downs. There can be fluctuations in the market, or you can suffer a loss due to some dysfunctionality in the working of your business. When you build the structure of your business, you may have implemented various strategies to protect it in unknown situations. But you might have left planning for one crucial thing in your business, which is a divorce. You might be thinking that your marriage may last forever, and we wish that it does, but if it happens to break in any instance, then you can suffer from a significant loss in your business. When a divorce occurs, almost half of what you own in your company will go to your spouse, and you may also need to provide for them with your salary or assets. Following are some tips that we compiled from having you suffer from both financial and emotional resent after a divorce.
Take Advice from a Lawyer, or Two!
Business structures vary in every country and city. Laws to regulate their flow also vary according to state. Hiring a business lawyer is vital to keep your business running smoothly and avoid threats that can harm it in any way. While for your business a suitable business lawyer will be sufficient but when matters like divorce are to affect your expertise, you may need a reputable divorce lawyer as well to get their advice on how to save your assets. Be sure to hire a legitimate and experienced lawyer such as from Stephen Durbin and Associates to help you in your divorce. A divorce lawyer knows to make you aware of what strategies you can use to save your business in case that you’re moving to divorce.
Divorce is meant to provide equal shares of what you and your partner own to each other. In a situation like this, your business could get divided between you and your spouse. When you know that your marriage is in danger, you can transfer all the shares in your company in your name and give up the assets that don’t come under it. These can be your savings accounts, vehicles or properties.
Get Prenup or Postnup
If you’re reading this and are about to get married soon, a piece of crucial advice to have your business all in your hands after a divorce happens; sign up for a prenuptial agreement. This is a piece of paper that entails what you and your spouse will receive after a divorce. It is signed before the marriage. However, there is no need to worry if you didn’t have time to sign up for one before you tied the knot as many areas in US and Canada now agree with postnups as they’re similar to prenups but can be signed up for after the marriage.
Write a Hefty Amount in Your Salary
Your ex-wife or ex-husband will claim more than half of your company’s asset if you don’t bring a substantial salary home. It’s true! Your spouse’s lawyer can stand in court and rule out that you didn’t bring in home enough amount to fulfil your family’s needs and invested it all in your business. This way, your ex-partner will be entitled to more than half of your business’s shares. To prevent this from happening, you can write yourself enough salary that can suffice both your and your family’s needs.