Protecting Your Company After a Divorce
The repercussions of a divorce can be wide-ranging and affect many aspects of a person’s life, but what many people fail to anticipate are the hardships a divorce can levy against a business they own and operate.
Although statistics are difficult to pin down, many business experts suggest that divorces often wreak havoc on company matters, sometimes leading to bankruptcy or other financial problems. To avoid these unintended consequences, these same experts suggest the following preventative measures:
- Consult trusted advisers. Divorce can be difficult and distracting for anyone, and particularly those who are trying to run a business. While operating under these burdens it’s important that you have a trusted team to turn to when making important business-related decisions. They’ll help you stay on the right course as you deal with the divorce process.
- Consider settlement sources. Although companies are sometimes sold and the profits divided as part of a settlement, business owners will want to consider other options that keep the business intact, including dividing other available martial assets such as cash, stock, real estate and retirement accounts. Other options include establishing a property settlement note, which represents a long-term payout of the value of your business share.
- Plan ahead. One of the best steps to take to protect your business happens well before a marriage dissolves: creating a prenuptial agreement to determine which property or assets are separate and how any marital property will be divided. Drafting an adequate pre-nup is important to ensure it will hold up after a divorce, and both parties should ideally be represented by legal counsel in this process.
If you’re a business owner or concerned how a divorce might impact your company, consult the knowledgeable Long Island divorce attorneys at Bryan L. Salamone & Associates today.