Owning a business can be a rewarding endeavor, and you may put significant time and effort into turning your company from a concept into a successful enterprise. With what you put into the company, you might not want to let anything stand in the way of your goals, but it might not always be easy to tell what the future will hold.
If you and your spouse decide to part ways, you might have questions about how the outcome of the process will affect your company. While this is a type of asset that could play a significant role during a high asset divorce, there might be certain steps you can take to help protect the future of your business when facing a similar life change.
Topics to address
The idea of dividing complex business assets in a divorce can be exceedingly intimidating, and there are a variety of factors that may influence the role your New Jersey business will play in this process, such as:
- Existing agreements: The presence of a prenuptial or postnuptial agreement may include terms that dictate how to handle a business during a divorce, and a buy-sell agreement may also help provide protection.
- Type of property: The role your company will play may also depend on whether it is marital or separate property, and understanding the difference between the two could prove imperative.
- Role of spouse: Even if your business is separate property, if your spouse works for you or plays any type of role in the success of your company, he or she may be entitled to a portion thereof during divorce proceedings.
- Yearly salary: Your business could also lose its separate identity if your spouse does not receive any type of benefit from your profits, and paying yourself a healthy yearly salary could help stave off similar concerns.
It isn’t always possible to predict the changes life may bring, and if you did not take steps to protect your business, it might be in your best interests to seek insight on how best to approach the situation.
Preparing for the process
Knowing every vital factor to address regarding a business and the role it might play during the end of a marriage can be vital, but it can also be a complex task. Fortunately, you don’t have to face this alone, and seeking guidance in addressing your situation may help you better prepare to make informed decisions about your options. Seeking advice may be essential to helping you create a strategy that meets your interests and needs and helps you transition into the next chapter of life with confidence.