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Protect your business from your divorce

One of the biggest concerns for business owners in Ohio is keeping their business assets protected. While fraud, changes in the market, and other similar issues are always monitored with care, most business owners forget about one possible hurdle: their spouse. Unfortunately, it's wise to consider what to do in the event that a divorce becomes inevitable, as it may put the business at risk.

Entrepreneur states that there are ways to "divorce-proof" a business, keeping the business assets safe from division between spouses. This includes both preemptive measures, and things to do after a divorce is already in process. Preemptive measures include:

  • Creating a buy-sell agreement
  • Signing a prenuptial or postnuptial agreement
  • Placing the business in a trust
  • Having the appropriate insurance

Measures to be taken after a divorce becomes more likely can include things like firing one's spouse, keeping strong records of all business expenses, and refusing to mix business assets and household assets. This limits the claim that a spouse has on a business.

FindLaw has similar suggestions for protecting a business from divorce. Their suggestions include forming an LLC or corporation, which can mark one's business as a separate entity from marital property. Likewise, they suggest keeping an amicable relationship with the spouse in question, if possible. Staying on good terms as business partners may be difficult in some cases, but it will allow business owners to cut through the complex process of dividing business assets and determining what goes to who.

Dealing with business asset division in any capacity can be a headache, especially if it's added to already complex issues like divorce. By taking these steps, some of the confusion and trouble can be cut down on.

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