10 Tips to Divorce Proof Your Business

For those whose marriage is in trouble or who are about to begin a divorce, a few strategies can help preserve a business. Once the divorce proceedings start, entrepreneurs won't likely be able to implement some other legal maneuvers that, if accomplished in happier times, could keep their business from landing in a soon-to-be ex's possession.

Entrepreneur.com offers a guide to divorce proof your business:

1. Maintain good records, and keep the family's finances separate from those of the business.

2. Pay yourself a good salary.

3. Fire your spouse.

The more prominent the ex's role and the longer he or she worked in the business, the stronger the case a lawyer could make that this spouse helped build the enterprise and should profit from its growth.

4. Sacrifice other assets.

Try to retain 100 percent ownership of the business by forfeiting other assets instead, such as retirement accounts, the family's home, vehicles or collectibles.

5. Get a fair valuation.

6. Arrange to make any payments over time.

A buy-out of the spouse’s interest can be made over time instead of a lump sum payment.

7. Raise capital by selling a stake.

8. Sign a pre-nup or a post nup

You and your spouse can “agree” that your business is your separate assets and will not be subject to equitable distribution if the marriage ends in divorce.

9. Place the business in a trust.

This keeps the business from being counted as a marital asset as you no longer personally own it..

10.   Create a buy-sell agreement.

A buy-sell agreement defines what happens to a business should any owner's status change, as is the case in a divorce.

37 Responses

  1. As other people say, a marriage is like a business venture - there are times when it becomes a success but there are also times wherein they cannot see eye to eye anymore and they result to closing or divorce. With this, investments during the marriage are affected and here comes the nasty or cut-throat tactics of legal aides of both parties. As much as possible, these things can be avoided as you try your best to be fair, civil and state the items or businesses that should not be touched especially if you solely worked hard for it.
  2. Aw, this was an incredibly nice post. Taking the time and actual effort to produce a really good article… but what can I say… I procrastinate a lot and don't manage to get anything done.
  3. Extremely individual pleasant website. Tremendous info available on few clicks
  4. Passion the site-- really individual friendly and lots to see!
  5. Lovely just what I was searching for. Thanks to the author for taking his time on this one.
  6. 11/4/2016 @ 14:32:29: lorem ipsum clementlaw.com
  7. I am really impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you modify it yourself? Anyway keep up the excellent quality writing, it's rare to see a great blog like this one today.
  8. BLOGTITLE is an excellent read. I just now sent this on 11/7/2016 to a coworker who has been doing a little research of their own on this topic. To show his appreciation, he just bought me dinner! So, let me express my gratitude by saying: Thank you for the drink!
  9. clementlaw.com is good, solid content. I just passed this on 11/9/2016 to a fellow student who's been doing some work of his own on this subject. To say thank you, they just bought me lunch! So, let me express my gratitude by saying: Thanks for the meal!
  10. 11/11/2016 clementlaw.com does it again! Quite a interesting site and a thought-provoking post. Keep up the good work!
  11. Kudos for the great site you've created at clementlaw.com. Your enthusiastic take on the subject is definitely inspiring. Thanks again!
  12. Great post. I was checking constantly this blog and I am impressed! Extremely useful information particularly the last part :) I deal with such information much. I used to be seeking this certain information for a very lengthy time. Thank you and best of luck.
  13. clementlaw.com is an excellent read. I just passed this on 11/23/2016 to a coworker who has been involved in some work of his own on this subject. To show their appreciation, they just bought me dinner! So, I should probably say: Thanks for the drink!
  14. I'm gratified by the manner in which clementlaw.com deals with this kind of topic! Generally on point, often controversial, without fail well-researched and more often than not quite challenging.
  15. 11/27/2016 I'm pleased with the way that clementlaw.com handles this type of subject! Generally to the point, often contentious, without fail well-written and stimulating.
  16. hey
    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something informative to read?|
  17. They may be Super adorable and properly made. These Smart Balance Wheel http://adf.ly/6249830/banner/www.fashionhoverboard.com will be the fantastic balance between ease and comfort and style. Certainly glad I have them!
  18. Outstanding quest there. What happened after? Take care!
  19. Hello to every body, it's my first pay a quick visit of this website; this website consists of awesome and genuinely good stuff in support of readers.|
  20. Any lace frontal https://www.youtube.com/watch?v=ny8rUpI_98I really are hefty in my little tip toes. My partner and i excursion a great deal with them. They manufacture the tip toes take a look enormous and that i currently have massive ft as things are.
  21. Hey, you used to write magnificent, but the last several posts have been kinda boring... I miss your great writings. Past few posts are just a little out of track! come on!
  22. 1/2/2017 @ 20:20:55 Love this site– extremely informative and a lot of stuff to think about!
  23. It’s great to come across a web site every once in a while that isn’t the same out-of-date, rehashed material. Fantastic read.
  24. Regards for helping out, fantastic info.
  25. Thanks for sharing, this is a fantastic blog article.Really thank you! Really Cool.
  26. Great article.Really thank you! Cool.
  27. you're truly a excellent webmaster. The website loading pace is amazing. It kind of feels that you are doing any unique trick. Furthermore, The contents are masterpiece. you have done a excellent task on this topic!
  28. ig
    Hi just wanted to give you a brief heads up and let you know a few of the pictures aren't loading properly. I'm not sure why but I think its a linking issue. I've tried it in two different browsers and both show the same results.
  29. fotbollströjor \n It is appropriate time to make a few plans for the long run and it is time to be happy. I have read this put up and if I could I desire to recommend you some attention-grabbing things or suggestions. Maybe you could write next articles regarding this article. I desire to read more issues fotbollstrojor sverigen approximately it!|
  30. [url=http://ameblo.jp/christiatd/entry-12258852298.html]ameblo.jp[/url] [url=http://demetriu.hatenablog.com]demetriu.hatenablog.com[/url] [url=http://facegospel.com/blogs/9188/3449/barcelona-tr-ja-kina-beh-ver-kas]facegospel.com[/url] [url=http://www.malluz.com/groups/262]www.malluz.com[/url]
  31. Very neat article post.Thanks Again. Great.
  32. A big thank you for your blog.Really thank you!
  33. Say, you got a nice article post. Awesome.
  34. Wow, great blog article.Really thank you! Really Great.
  35. Thanks-a-mundo for the article post.Really thank you! Want more.
  36. Im thankful for the article. Will read on...
  37. I am so grateful for your article.Really thank you! Awesome.

Leave a comment

Contact Us Now!
(212) 683-9551