Divorce can be ugly and tumultuous and perhaps these kinds of divorce cases occur in marriages where businesses are involved more than in any other kind of divorce. When a Clinton Township couple shares a business, dividing it can be a huge chore, as both parties want to receive their fair share of the settlement. Separating a business can play out in a lot of different ways when you decide to divorce.
In some cases, divorcing couples simply sell their business and split the profits. In other cases, one spouse will give up his or her portion of the business for a settlement fee. Still in other situations, both parties might want to remain active in the business. Each of these is a possibility if you own a business with your spouse and you decide to divorce.
On the other hand, if you think your marriage is headed downhill then according to Entrepreneur.com, there are some steps you can take to help protect your company in the event of divorce.
- Separate business from family – it’s important to keep detailed and separate financial records for both your business and your family. You should also avoid borrowing from one account for the other.
- Pay yourself – if you have a good salary from the business it will look better than if you have used all your cash flow solely for the business. Doing that could lead to your spouse being entitled to more money in the divorce.
- You’re fired – if you are in a position to release your spouse form his or her duties with the company it’s a good idea to do that sooner rather than later. The longer he or she is involved the greater a stake he or she could claim.
- Give up other assets – if you want to maintain complete control and ownership of your business then you might need to consider giving up other valuable assets in exchange for your company, such as retirement accounts, the family home and/or other property.
Although this information is useful it should not be considered legal advice.