Couples in Kentucky and the rest of the United States who are facing divorce may find it challenging to navigate the process of the distribution of assets. This is especially true for couples who own businesses. Fortunately, there are several options to help ensure that the end of a marriage doesn’t disrupt your business.
A divorce can affect your business in a variety of ways. The financial repercussions of divorce can be the most daunting even if the divorce is uncontested. Certain states require an even 50/50 split of all community property while other states make a final determination of the division of assets through the legal system.
In addition to the potential financial upheaval of your business operations, the emotional stress of going through a divorce can take a toll on running a business. You may become distracted by making phone calls to lawyers, providing documentation and attending to other matters pertaining to your divorce. Whether you’re a CEO or a majority shareholder, there are certain things you can do in advance to safeguard your business or organization.
One of the easiest ways to protect your business against interruption is to draw up a prenup or postnup agreement. You should also make every effort to keep your financial assets separate. For example, refrain from using collateral in your home as an investment in your business. You can also consider putting your business into a trust so that you don’t officially own it. That way, there won’t be anything in your name that could get involved in a divorce settlement.
Unfortunately, not every marriage works out. To protect your company, it’s important to prepare in advance. If you’re facing the inevitability of divorce, a family law attorney may be able to help you navigate the complexities associated with the distribution of assets.
