How business owners can prepare for divorce

| Feb 27, 2019 | divorce, Firm News

For business owners in Kentucky, divorce can carry some unique complications. While ending a marriage is always a significant financial issue, this can be especially true when a company is involved. Because of the major effects that a divorce can have on a firm’s viability, many business owners may want to plan for divorce before it happens. Indeed, many investors or business partners may even insist on some kind of preparatory measures as a condition for becoming involved. Of course, many spouses are involved in starting a business together, but making a plan can help to protect the business at a later time.

A prenuptial agreement or postnuptial contract can play an important role in divorce preparation and help to facilitate later negotiations. It can also help partners reach a fair agreement at a time when both feel positively about each other. In some cases, the prenup might specify that the business is one spouse’s separate property. It might attribute increases in value to marital property, but the document could provide for a specific amount for the other spouse or specify that a distribution should be done in cash rather than by splitting the business itself.

When both spouses are partners in the business, such an agreement could lay out the mechanism by which a buyout could take place. It could also establish a basis for continuing to work together after a divorce, which could be the most profitable course of action for some successful business owners.

A spouse considering divorce has a number of financially challenging issues to face, especially if they own a business. However, a family law attorney can help a divorcing spouse to reach a fair settlement on a range of matters, including property division and spousal support.