Do you have to divide your business in a divorce?
One of the main concerns you may have with filing for divorce is the future of a business you own in New York. If you started or acquired the business during the marriage and you don’t have a prenuptial agreement, you’ll have to plan on how the business will be divided or assess whether you need to buy out your spouse to own it.
How to prepare your business for divorce
If you are planning on filing for divorce in New York, it’s important to prepare your business to protect it from being handed over to your spouse. You’ll need to maintain thorough records and keep everything organized. It’s also necessary to keep the finances of the business separate from your family’s finances. Get an accurate evaluation of the business and consider selling a stake to raise the capital. If possible, consider easing your spouse out of the business as much as possible and pay yourself a higher salary. You may want to forfeit other types of assets in the divorce agreement and work hard to retain 100% of the company.
Divorce-proofing your business requires limiting their involvement in operations as much as possible. You can also consider paying your spouse for their share of the business to ensure that you can obtain 100% ownership of it. If you plan on buying out your spouse but don’t currently have the funds, create a plan for making payments in the future. It’s recommended that you avoid borrowing money from others for the buyout. You may want to use the services of a court-appointed valuation professional to determine what your company is worth before filing for divorce.
Who can you contact for legal assistance?
Learn more about how you can protect your business while going through a divorce by contacting a legal professional. An attorney may evaluate the details of your situation and help you reduce the risk of loss when you want to maintain ownership of your company.