If you are going through a divorce and you own a business, you may fear that in the end, you will not only lose your marriage but also your business. While this very well could happen, it is important that you protect yourself before you ever get to this point. According to NFIB, the ideal situation is that you protect your business through a prenuptial agreement. However, if you are already at the stage of divorce, then it is too late for that.
It really is important, though, to think ahead when it comes to your business. When you start your business, choose a protective form, such as a partnership or LLC. Having this protection enables you to create agreements or other documents that protect the business in the event that you get a divorce. Having partners allows you to create a partnership agreement that can specifically outline what would happen if a partner gets divorced.
It is also important that you do not get your spouse involved in the business. Plus, you should keep personal finances and business finances completely sperate. Never get a business loan in your spouse's name or put business funds in your personal account. Write yourself a check to pay for your services to the business if you need to have an income from the business. Also, never run your business at your home. Have a separate physical location where your business is conducted.
While the majority of protection for your business has to happen before you are in divorce court, you may still be able to negotiate with your spouse to save your business as a last resort. This information is for educational use only. It is not legal advice.
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