BROOKLYN, New York. You’ve invested years of your life in your business and built the value of your brand and company through long hours and hard work. If you are getting divorced and have your own business, it is important to take steps to protect your company, assets, and brand. Any increased value your business has enjoyed since you got married can be subject to community property laws in your state.
According to Entrepreneur, the best time to protect your business is when your marriage is good, or before your marriage even happens, by having your lawyer help you with a good prenuptial agreement. What if you plan to hire your spouse in your company or want to have your spouse help with the family business? Before hiring your future wife or husband to help you with the business, you’ll need to consider that any role your partner plays could be considered integral to increasing company value. If you do plan to work together, keep detailed records and pay your spouse a good salary.
Any increased value that your business gains during your marriage can be subject to division of assets laws and community property laws. Good business practices, like keeping sound records, keeping your personal income and assets separate from the business, and paying yourself a good salary from the business’s profits can help you protect your brand and company. According to Forbes, another good practice is to put your business in a trust. However, this can be a complex legal process and if you try to do this too soon before divorcing, a judge might still require you to divide your business profits and value with your ex.
If you are getting divorced, speak to your divorce lawyer in Brooklyn, New York about how the courts might view your assets should the divorce go to trial. The Elliot Green Law Offices are divorce lawyers in Brooklyn, New York who can assess your situation and draw up a plan of action to help you protect your business interests. For example, if you didn’t take steps to separate business interests from your marriage, you may still be able to retain control of the business by giving your spouse marital property and assets of comparable value. You could also sell small stakes in your business to raise capital and retain ownership.
Divorce can be a time of immense loss and sadness. If you’ve devoted time and energy to your business, you don’t want to lose this either. The good news is that it is rare that a partner can completely take over a business from his or her ex. Generally, the courts either require both parties to split the value, and there are many ways you can do this without losing creative control of your business.
If you’re getting divorced and have questions about how to protect your business interests, contact the Elliot Green Law Offices in Brooklyn, New York today. Our divorce attorneys can review your situation and help you plan your next steps.
Elliot Green Law Offices
32 Court Street, Suite 404
Brooklyn, NY 11201