If you are a business owner going through a divorce, it is important for you to do what you can to protect yourself and your property. During your marriage, it’s likely that some, if not all, of your business’s assets became marital property. That means that your spouse could be entitled to some of them upon divorce.
If your business is a family business, then you need to determine a few things. First, how much is the business worth? Second, how involved is your spouse in the business? Do they want any part of the business, or are they interested only in a fair share of marital assets?
To start with, find out how much your business is worth. There are a few ways to do this, but it’s suggested to get a third-party valuation that you and your spouse agree on.
Next, determine how involved your spouse is in the business. If they do nothing in the day-to-day operations, then you may have a better chance of negotiating to keep the business in exchange for other assets. If they’re a partner, on the other hand, then you may have to work out a way to continue working together, to divide the business or move forward in other ways.
Finally, ask your spouse what they expect. If they’re not interested in the business but want fair treatment upon divorce, it’s possible you could use the valuation to find a way to compensate your spouse without threatening your business.
These are a few things to keep in mind as a business owner going through a divorce. Protecting your business is important and takes preparation.