As the owner of a family business, you may have some concerns about moving forward with the divorce process. Most importantly, you're concerned that you could lose some or all of your business in the split.
While this is a valid concern, you need to keep one thing in mind: There are steps you can take to protect your business. You simply need to think one step ahead at all times.
Here are some tips to follow:
- Ask your soon-to-be spouse to sign a prenuptial agreement before you tie the knot. With the right approach, this can keep your family business out of a future divorce.
- Use a trust to protect a future generation from losing the family business as a result of divorce.
- Continue to run the business with your ex-spouse. This may not be the ideal situation, but it's often the best way for both people to get what they want from the divorce.
- Buyout the other party. Your ex-spouse may be open to a buyout, as this allows him or her to receive money for his or her portion of the business, all the while removing him or herself from future obligations
These are just a few of the many things you can do to protect your family business in the event of a divorce.
If you find yourself going through a divorce and wondering what will happen to your business, don't hesitate to learn more about your legal rights. When you make the right moves at the right time, you'll find it much easier to avoid a situation in which you lose some share of your business.
Source: MarketWatch, "How to protect your family business during a divorce," Daniel Thompson, accessed Nov. 14, 2017