Getting Down To Basics with

November 13, 2018

Financial

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Factors To Consider To Divorce-Proof Your Business
For first time marriages in the United States, divorce rate is 41%. When it comes to staying married, the gamble is 50/50. There are a lot of things to consider if you decide to part ways. Your business with your partner is one major thing at stake. It is vital you know how you can protect your business. Keep in mind that divorce can get messy. It is not uncommon to hear of one partner going after the other’s business when a marriage splits. You need to plan in advance. Keep reading to know how you can divorce-proof your business.
It is important you limit your partners involvement in your business. Make sure you seek legal advice before involving your partner in your business. Majority of couples achieve success by working as a team. Get into business with someone you trust. A partner who is trustworthy will respect your business. Even when you part they will be reasonable. Your partner needs to respect that the business is a 50/50 deal. It is advisable you put the role of each one of you in writing with an attorney present. It helps avoid any disagreement. If you have any shareholders you need to have a bu-sell agreement. They will be able to buy the shares in case you divorce.
Also, having a prenuptial agreement is important. It is the safest way to protect your assets. It is a legal contract that protects your assets. When making a prenuptial agreement, you need to ensure you include your business as an asset. Make sure you have a lawyer when formulating the agreement. Prenuptial laws vary from state to state. A lawyer will make sure that there are no loopholes in the agreement. It is essential that your partner signs the agreement in front of a notary. This will make sure that your partner does not say they were coerced to sign the agreement.
In addition, you need to invest part of the income into your household. Many business owners put their money back into the business. This can result in a tricky situation if you get divorced. Putting some money back to your household will protect you in case your partner claims not to have ever received a fair share. It is wise to give yourself salary.
Ensure you get an attorney when divorcing. There are couples who divorce fast and peacefully with a mediator. However, majority are those who cannot work through their issues. That is why you need an attorney to guard you during the court process. It is vital you protect your assets and business from divorce. Failing to hire a lawyer can make things extremely hard. There are lawyers who are experienced than others. You need to choose a lawyer who has specialized in divorce case. When the divorce is final, get a postnuptial agreement.

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