Are you a business owner? Are you going through the divorce process? If you answered yes to both questions, you know just how important it is to protect your company. While this may be something you want to do, it is anything but simple. After all, your spouse is well aware that you own a business. He or she may also have an idea of how much it is worth.
If you are concerned about protecting your business in divorce, here are some tips to follow:
-- Keep business and personal finances separate.
-- Sacrifice other assets. If you want to keep 100 percent of your business, you may have to give up something else in a divorce settlement. This can hurt, but at least you won't lose any stake in your company.
-- Know the value of your business. This ensures that you are dealing with the right numbers as you negotiate a settlement.
-- Make payments over time. If you are forced to pay a former spouse a share of the business, it is likely that you can do so over the course of many years.
There is nothing simple about divorce, and this absolutely holds true if you own a business. It is important to you that the company remains unharmed by your personal decision to divorce. However, your former partner doesn't care about this. He or she wants nothing more than his or her "fair share."
If you are a business owner going through divorce, do whatever you can to protect the well being of your business.
Source: Entrepreneur, "How to Divorce-Proof Your Company," accessed Nov. 09, 2015