If you are getting a divorce, you might wonder what effect, if any, this has on the business you became a partner in. Does this count as an asset your future ex-spouse may gain rights to in a divorce or is it off limits?
Unfortunately, unless there was a legitimate prenuptial or postnuptial agreement in place with provisions that addressed this, it may affect the business. In fact, it can do so in a number of ways.
The business partnership may count as marital property. Forbes notes that this may lead to the ex-spouse receiving a share of the business, which might also come with voting rights. Because that new stake in the business comes from your existing share, you lose some of their voting rights and overall power in the business.
Your partner might also get drawn into the divorce process itself by way of assisting with the valuation of the business. To decide how much an ex-spouse might become entitled to, the authorities need to know the worth of the business. This holds true even if you intend to provide something else in place of business ownership, such as the house or cash payments.
It is easy to become preoccupied with all the different aspects of divorce. You might not have wanted the divorce or feel as if you are fighting to keep enough of your own assets to keep a roof over your head. This can make it difficult for you to be as attentive to the business and the other partners, which may create some complications down the line if things get overlooked.
When a business becomes one of the assets that need to get divided during a divorce, it often complicates things for both the business and the divorce. However, if partners can come to reasonable compromises, it can help to resolve a lot of the issues that arise.