When marriages end, and the divorce process begins, people begin to think about their futures. This is especially true for business owners in Arizona and across the U.S who may be worried about the future of their companies. Although neither person must liquidate the company, certain changes may need to take place according to the law.
The law in your state defines marital property
Many states throughout the nation (such as Texas) demand that all assets are divided down the middle during a divorce, including businesses. However, this law often only focuses on assets that the law considers to be marital property. Marital property includes any assets a couple acquires during the marriage. This means that if you began your company while you were married, the law considers it to be marital property. This also includes other items, such as stocks and real estate. In fact, many attorneys recommend aspiring entrepreneurs avoid using their mortgage to fund their businesses as this can further complicate matters.
It’s safe to say that not many ex-married couples want to continue to spend time together after divorcing. However, if a business is split down the middle, this is usually the result. One way to protect your company is to simply buy out the other half that your ex-spouse owns. You should be aware that he or she does not have to agree to your request, but it is worth the shot to regain control of your business.
One of the best ways to protect your business is to have a legal agreement at the ready before you get married. A prenuptial agreement may contain wording that states that your spouse will not obtain control of your business and that he or she agrees to these conditions. If you have already married, it may not be too late. A postnuptial agreement is also an option and can feature similar conditions to which your spouses.
Fighting for your business once a divorce has begun can be quite difficult. Thus, it is important to bring in an experienced attorney to guide you through the options you have on hand.