Going through a divorce can be a difficult experience. Aside from the emotional turmoil, you also have to handle the process of property division, spousal support and child custody with your partner.
If you own a business in Florida, one of your concerns in a divorce may be losing your company. However, with the right strategies, you can keep full ownership of your trade. Here are tips to help you protect your business during divorce.
Reviewing your pre- or post-nuptial agreement
If you and your spouse prepared a pre-nuptial agreement before marriage, it would be best to review it now. This document may have a clause that gives you the right to keep the business in the event of a divorce.
If you do not have a pre-nup, consider creating a post-nuptial agreement with your partner before proceeding with the divorce. To ensure the terms are favorable, a lawyer can assist in drafting clauses that benefit you.
Proving your business as separate property
Understanding the classification of your business in property division is crucial. If the courts treat your company as a marital asset, it will be subject to division. Avoid this by gathering evidence, such as:
- A document that shows your business’s date of establishment to prove that it existed before the marriage
- A compilation of statements from your business’s bank account
- A collection of orderly financial records that demonstrate how business funds were used for business purposes
These records can help you establish that the business is yours before the marriage, proving it as separate property.
What to do when courts treat your business as marital property
Protecting your business during a divorce can be difficult. The courts could still consider your business as marital property, despite submitting evidence. However, it is possible to gain full ownership of your company through negotiation.
Although courts have the power to divide assets, judges encourage couples to handle the division of their properties through a marital settlement agreement. This allows you and your spouse to outline the terms of the divorce, including the division of assets. Consider researching more about this online to help you make informed decisions.
