How Can I Protect My Business in the Event of a Divorce?

Hardly anyone goes into a marriage expecting it to end in divorce. However, if you are a Colorado business owner, or think you may end up owning a business during the course of your marriage, you have a lot to lose should things take a turn for the worse. However, there are some steps you can take to make sure your business and the assets that go along with it are protected if your marriage falls apart.

One important thing you can do, according to the Huffington Post, is to make sure you keep accurate financial records at all times. That way, if any questions about the company’s financials are raised during the divorce process, you will have the documentation you need. It is also a good idea to keep your business finances and your personal finances separated to the greatest extent possible.

In addition, if your spouse was not involved in the business at the time of your marriage, it may not be a good idea to let him or her work for the company after you are married. If the company takes off and experiences growth, your spouse can then claim that he or she contributed to that success and are therefore entitled to part of the company.

Finally, the best possible thing you can do as a business owner enters into a prenuptial agreement with your future spouse. This type of agreement can clearly set forth what assets you are entering the marriage with and which ones you will retain should the marriage come to an end. Whether you intend for the business to be something you and your spouse will share or you expect that your spouse will have no part in it, a prenuptial agreement gives you the opportunity to talk things out and set your ideas clearly in writing so that there is no squabbling, later on, should divorce negotiations be necessary. While bringing up the subject of a prenuptial agreement is never easy, it is an important conversation to have if you want your business assets to remain protected.

Tags: Prenuptial Agreements