On behalf of Cobert, Haber & Haber Attorneys at Law posted in Divorce on Friday, April 7, 2017.
If you own a business in New York and are thinking about filing for divorce, you should start taking precautions now to protect your company. It does not matter if you manage the company by yourself and your spouse made contributions to it or your spouse is a partner, your business is an asset that can become a spoil of divorce.
Sign a post-nuptial
If you and your soon-to-be ex-spouse are open to entering into a post-nuptial agreement, you should do it. Have a discussion about all of your assets, including your business and decide who gets to keep them in the event of divorce. According to ABCNews.com, a post-nuptial contract cannot solve all of your property division problems, but it can provide you with peace of mind about your situation. Keep in mind that even if your spouse decides to honor the post-nuptial agreement in the divorce, the court has the final say. They do not have to abide by it.
If you and your spouse are dedicated to the success of the business and willing to put aside your differences at work, you may be able to reach a shareholder’s agreement. Of course, this option requires you to continue working with your spouse, but it can pay off if you both keep everything strictly about business and leave your emotions and personal situations out of the office.
Buy out your spouse
If you spouse is not willing to enter into a post-nuptial agreement, you could offer to buy them out. Buying your spouse out of the business may require you to give them a large chunk of money now, but it can keep you from spending more money trying to keep your divorce proceedings from dragging on.
There are other ways you can protect your business from divorce. You should research your options to avoid potential complications that can have a negative impact on the outcome.
