As a business owner, you put your heart and soul into making sure your company is always running at peak performance. Unfortunately, in the event of a divorce, everything could begin to fall apart around you.
There are tips you can follow to protect your business from a divorce, including the following:
- Use a prenuptial agreement: If you're concerned about losing your business as a result of divorce, sign a prenuptial agreement before tying the knot. This allows you to outline how your business assets will be treated during the divorce process (if it ever comes to light).
- Pay yourself a salary: There's nothing wrong with putting money back into your company, but neglecting to pay yourself a salary could backfire on you down the road. You don't want to do anything that jeopardizes your claim of ownership.
- Don't mix personal and business funds: A common mistake that's easy to make, mixing funds will bring many challenges to your divorce. For example, if you take marital money and use it to purchase business equipment, the other person may be entitled to a portion of the asset.
It's your hope that you never have to go through divorce, all the while attempting to protect your business. However, if you find yourself in this position, don't wait to learn more about your legal rights and the steps you can take to protect one of your most prized assets.
Your business means a lot to you, so it's a must that you always protect it. Even if you don't have your sights set on divorce, it's best to plan for everything.