Business owners who put their life and soul into their company may be more at risk of getting a divorce, according to the American Psychological Association (APA). The APA says that about 40 to 50 percent of marriages end in divorce. If you believe there is no way to save the marriage, then shifting your focus to protecting your business may be in your best interest.
How can I maintain control of my business?
Marriage may limit the options available for you to protect your business. It is too late to sign a prenuptial agreement that may have protected your company. Additionally, forming a limited liability company for business protection purposes may be more difficult.
There are many more options available that may allow you to keep your business, including:
- Sign a postnuptial agreement: If you and your spouse are on good terms you may be able to come to an agreement about the business. You may need to sacrifice other assets, however.
- Keep your spouse uninvolved in the business: If your spouse has had some involvement with your business they potentially could have a claim to it. The less involved they were in the business the better your chances may be of keeping control.
- Separate marital and business funds: If you reinvest most of your income into the business, you may be at risk of losing control. Your spouse could claim they have a larger stake in the company if business and marital funds are combined.
- Sell a stake in the company: Selling a stake may allow you to raise extra capital and keep majority control while also paying off your spouse’s claim to the company.
Attempting to protect your company in the event of a divorce may prove to be difficult. There are many different options available to you and if you have any questions you may want to speak with a seasoned family law attorney.