If you are divorcing your spouse, you know that your property will have to be divided up. Does this mean that you have to divide up your business as well? It could, but there are ways to protect a business and its assets in a divorce. Our Morris County, NJ division of assets attorneys can tell you more about your options.
Can a Prenup or Postnup Protect My Business in a High Net Worth Divorce?
Couples who want to set some rules about how assets get divided can do that with prenuptial and postnuptial agreements. A prenup gets signed before the marriage, and as long as it meets the state’s legal requirements it can be used to say what would happen to your property in the event of a divorce. This agreement can also be used to address your business and its assets.
Many couples who use a prenup have a high net worth, but you do not have to be extremely wealthy to use one. As long as you are entering the marriage with some kind of property, including business assets, you may find that one of these documents can be worthwhile to draft.
When Can We Write a Postnuptial Agreement?
Now if you forget to make a prenuptial agreement, you and your spouse can draft a postnuptial agreement instead. This can be signed at any time after you have gotten married. It can be used to address the same kinds of financial matters as a prenup, so it’s a great way to safeguard your business assets and decide how you and your spouse will split up the marital property if you divorce. We just recommend having a lawyer help you draft this agreement so that it meets all legal requirements.
Can a Trust Protect My Business Assets in a High Net Worth Divorce?
In some cases, yes. If your business assets are owned by a trust instead of by you personally, then they may be protected during the divorce process. Complications can still arise if you have no prenup or postnup in place though, so don’t be taken completely by surprise if your spouse tries to claim a piece of your business.
Are There Alternatives to Litigation?
When there is a dispute over a business, litigation may not be the best way to settle it. Processes like mediation may allow you and your spouse to think outside of the box and find solutions that the court wouldn’t. For example, you may agree that your spouse helped you grow the business, but instead of giving up part of it you may make a deal where you pay out more alimony. If you are willing to talk things through, there’s a lot that you can do to protect yourself and your business.
Schedule a Consultation
If you have questions about how a business will be treated in a divorce, we can help. Contact Townsend, Tomaio & Newmark, L.L.C. to schedule a consultation with our team. We want to hear about your situation. Then we can tell you more about how our lawyers can be of assistance.
