Running a business is undoubtedly very rewarding. Being in a happy marriage is also amazing. However, if one goes wrong, there is a pretty good chance that it is going to negatively impact the other. With that being said, you should learn more about the impacts that divorce can have on your business. You’ll be able to do just that in the guide below.
Entering A Business Partnership
If you’re going to get divorced, there is a good chance that your spouse will want a chunk of the change. This may force you to enter into a business partnership with that individual. Essentially, this means that you’ll need to share your business with your partner and that can be a real burden. If you’re lucky, you might be able to buy them out. That can be pretty expensive too. The end result will depend on where you live and the specific laws regarding the matter in your state.
In some situations, there is a chance that your business will be considered marital property. If your spouse contributes to the business in any way, there is a good chance that it’ll meet the criteria. Then, it is subject to distribution. This means that the business will be split among both parties and that can be a real hassle. If you’re going to be married and simultaneously running a business, you need to ensure you are taking the necessary steps to protect yourself.
Before getting married, you may want to speak with a divorce lawyer. When you do, you should ask them about a prenup or a prenuptial agreement. While this is going to offer a wealth of protection, it is not a guarantee that you’re going to be able to save your business. Make sure that you provide your partner with full disclosure. Otherwise, they may claim that you attempted to hide assets and that could in problems in the future.
Post Nuptial Agreement
Another option you may want to consider is to get a postnuptial agreement. This is essentially the same as a prenup, but a postnuptial agreement is acquired it after you’ve gotten married. Therefore, it can be a little difficult to convince your significant other to sign the document and it might hurt your marriage. With that being said, you should be cautious with this one. However, if you do get it signed, it can help a great deal.