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If you’re a business owner going through a divorce, it’s critical you do everything you can to protect your business interests. Your livelihood moving forward depends on it. Here are just a few strategies you can employ to accomplish this.
- Contracts: You can develop either a prenuptial (referred to as antenuptial agreements in Minnesota) or postnuptial agreement, which are designed to facilitate simpler resolutions about key issues related to the marriage, including division of business interests. If you owned the business before you were married, for example, you could include a stipulation in the contract that your business should be classified as separate property, but also that value added to the business after the marriage could be considered marital property.
- Sole owner: In the absence of a contract, you could seek to establish yourself as your business’s sole owner, and clearly specify that in your company’s organizational documents. You may be able to include stipulations in organizing documents that the company cannot be transferred in the event of a divorce.
- Record keeping: Make sure you keep clear and detailed records of all sources of capital for the business, which will help you prove whether expenses came from premarital or marital assets.
- Financial organization: Keep all business and personal expenses and accounts separate, otherwise you could lose a significant amount of money in your divorce.
- Pay your spouse: If your spouse works for your business in any capacity, make sure he or she receives market rates for their position, otherwise they could attempt to seek a larger take as part of the divorce.
To learn more about how you can best protect your business during a divorce in Minnesota, speak with an experienced family law attorney at Appelhof, Pfeifer & Hart, P.A.
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