How to protect your Florida business when you divorce

| Apr 19, 2019 | Property Division

Studies published in recent years have shown that Americans are getting married later in life than they used to. Some may wonder if they’re doing this to protect themselves from being stripped of their valuable assets such as a business if they get divorced.

Marrying couples can minimize their chances of becoming embroiled in a heated battle over how to split up a business if they divorce by signing either a prenuptial or postnuptial agreement.

If you wish to retain it for just yourself, then you write that a business is your own coming into the marriage. You may also include that it’s not subject to division if you divorce. Unless you write in there something different, then any business that you set up after you marry will become both of yours.

Just because you’re okay with that doesn’t mean that you’re comfortable with your ex receiving half of its value if you divorce. You may wish to write that they’d only be entitled to a small percentage of the business if you split up.

You may also choose to state that one party would need to buy out the other’s share if you were to divorce. If you two feel comfortable continuing to work together then you may not need to include anything at all.

If drafting one of these isn’t an option in your case, then you should use your own personal assets to set your business up and incorporate it in just your name. It’s important that you never comingle assets for the business with your personal ones.

Paying yourself a competitive salary is also important. If you pay yourself less than what others with a similar title would receive, then your ex may lay claim to the difference between the two. It’s also important that you pay your spouse if they perform work for the company. This will help keep them from being able to lay claim to a larger stake in your business when you divide up assets.

Dividing up high-value assets such as your Florida home, investment accounts and businesses can be difficult, especially if no prenup or postnup is in place. A property division attorney who is experienced in handling complex cases can help negotiate a settlement in your divorce that keeps your Kissimmee business as intact as possible.

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