People in Ohio know how much impact a divorce can have on someone’s life. When a couple breaks up, they need to split their assets, move and sometimes find a way to share custody of their children. It’s a lot of work. What many people may not realize is that divorces can have further impacts on entrepreneurs.
Plan ahead to protect your business
Ideally, the best time to protect a business you founded is before you get married. A prenuptial agreement is the best way to do that. Another option is a postnuptial. These are less well-known than prenups, but they do essentially the same thing: lay out the way assets will be divided in a divorce.
Another way to protect a business by putting the business into a trust. With this structure, the business isn’t owned by you as a sole proprietor. Divorce isn’t the only reason to utilize a trust, either. This kind of structure can also have tax advantages for your estate after you pass away.
If the worst happens
Sometimes, though, no groundwork has been laid, and a divorce is underway. In that situation, it can be time to make some tough decisions. Selling your business may be a hard pill to swallow, but it may be the best solution. Remember, you built one successful enterprise. There’s no reason you can’t build another one.
An alternative might be to sell a stake in your business. This could provide you for cash for a settlement without losing control completely. Any business owner going through a divorce should contact an experienced divorce lawyer. A good attorney has seen situations like yours before. They’ll know how to help you get the best deal.