The Business as it Pertains to Divorce
Florida business owners put time, sweat, blood and tears into your business. Unfortunately, the hard work of many business owners goes to waste because of divorce. If you and your spouse run a business together, it is often great while you are together. But things get tricky once divorce is on the table.
Today we will take a look at ways you can protect your business in the event of a divorce. There are ways to divide family business that can keep you from losing everything you worked hard on.
Prenuptial and postnuptial agreements
Forbes takes a look at how division of family business works during a divorce. First, they point out that in some scenarios, a spouse may get up to 50 percent of a business. They also point out that you should take protective measures years in advance. This includes having prenuptial agreements signed. You may also want to consider other protective measures. One is making transfers to an irrevocable trust.
What if you do not get a prenuptial agreement in time? A postnuptial agreement may offer you an alternative option. You should note that courts hold postnups to a higher standard of fairness. This is because one spouse often gives up some of their rights under these agreements. Compare this to prenups. With prenups, there is no legal definition defining whose property belongs to who.
Making contingency plans from the start
They also ask you to consider if a martial partner is a good business partner. Divorce is a reality many people face. If you go into business with your spouse, understand that divorce is a possibility. Prepare in advance so you are not caught off guard later.