As a small business owner, you do not want a divorce to hammer your company. You want it to stay strong and, if possible, be divorce-proof. The end of your marriage may be something you can’t control, but you don’t want it to impact your professional life, as well.
What can you do to make this a reality? A few key steps to take include:
- Making sure you still pay yourself well and keep money aside for your family. Using all of the family money on your company — even if your spouse agrees to it — may give them grounds to come after more assets in the divorce.
- Using a prenuptial agreement. If you are already married and it’s too late for that, you may consider a postnuptial agreement, as well.
- Not working with your spouse. Many couples own small businesses together. This seems fine during the marriage, but it can raise a lot of issues during a divorce.
- Keeping bulletproof records of family expenses and business expenses. You want to be able to account for every last cent with as little confusion as possible.
- Knowing what the company is really worth. Don’t always trust your own estimates, or your spouse’s. Get a valuation from a professional so you know where you stand.
- Understanding that you may need to give up something else. Decide where you can make a trade, keeping your business assets and giving other assets to your ex.
These steps can help, but the main key is just to know exactly where you stand and what legal rights you have during a divorce.