Arizona women business owners who are going through a divorce have a lot on their plate. One of the biggest concerns that many have is the future of their company. The best way to put your nerves at ease is to understand the laws and what’s most likely to happen.
Marital vs. separate property
Property division when one spouse owns a business can be difficult. Determining whether or not the business is marital property comes down to a few different factors. First, was the business established before the marriage? If so, was there a prenuptial agreement naming the business as separate property? Did you contribute any of your marital income or assets to the business? If your business was established before your marriage, it’s likely considered separate property. However, if you funded the business with any of your marital assets, it may be considered marital property.
It’s a business transaction
At the end of the day, your divorce is a business transaction. It’s important to keep this in mind as you don’t want to fall victim to emotional decisions regarding the division of your assets. Take into account what will be in the best interest of you and your financial future. This may mean letting your spouse take a 50% stake in the company. Or, this may mean giving your spouse other marital assets to buy them out of their half of the business.
Women business owners who are getting ready to go through a divorce likely have a lot on their minds. While your business may be your livelihood, it’s crucial to face the realities of what may happen to it. By understanding the likely scenarios, you can work to prepare yourself financially and emotionally.