Any divorce can have complications, but a high asset divorce can be especially difficult to settle. Property and asset division can be daunting when there are large sums of money on the line. And if you built your wealth by owning and running your own small business, you could end up having to divide as much as half of the assets associated with that business with your ex-spouse.
So if you are a business owner, what can you do to protect your company's assets from being divided up in a divorce? Well, here are three things you may want to consider doing:
- Form your company as a corporation or LLC. By doing so, ownership of your company is held by a separate legal entity. Upon divorce, your assets will typically be protected from division.
- Keep on good business terms with your ex-spouse. If you are in a situation where your business assets are on the table, then do your best to create a civil and amicable relationship. By being civil and honest, you can keep the lines of communication open and work toward a more mutually beneficial settlement.
- Outline each spouse's financial obligations and expectations in a prenuptial agreement. Part of the agreement can stipulate if and how your business assets will be divided in case of divorce. You can also create a postnuptial agreement to clarify your financial situation after you have been married for a while.
The above are ideas that can be used by both very wealthy business owners as well as those whose businesses provide humble, yet equally vital, returns. And one more valid step you can take is to secure the services of an experienced divorce attorney. An attorney could work on your behalf in an effort to protect your assets and property, both business-related and otherwise.