For many entrepreneurs, their business is the culmination of many years of blood, sweat and tears. Although building a business takes years of hard work, it is one of the most rewarding things any person can do in life. Unfortunately, in the event of a high-asset divorce, many business owners could lose their livelihood if they are not prepared. Here are a few ways New York residents can protect their businesses amid a divorce.
A prenuptial agreement is probably the best and most effective way to protect a business from divorce. A prenup can distinctly identify the business as a separate asset. Thus, in the event of a divorce, the spouse would not have a stake in the business. Without a prenuptial agreement, there’s a chance the business could be divided in a divorce.
However, there are some cases in which a judge could rule in favor of the spouse despite having a prenuptial agreement in place. This can happen when a business grows during the marriage and a spouse helps with growing the business. Avoid this by keeping the spouse out of the financial aspects of the business and any business-related decisions. If a divorce happens, it will be harder to prove that the spouse played a role in the business’s success.
Understandably, a business owner will do whatever it takes to protect and preserve his or her livelihood. When it comes to protecting businesses and assets during a high-asset divorce, never go at it alone. New York residents can benefit by seeking the assistance of a legal representative. An experienced and knowledgeable attorney can safeguard personal rights and help a concerned spouse protect his or her assets.