While divorce is extremely common, few people entering a marriage go into it with thoughts of becoming a divorce statistic. However, over 50 percent of marriages ending in divorce. Accordingly, protecting your assets is key. In particular, entrepreneurs and business owners stand to lose quite a bit, considering their life’s work may be wrapped up in a business that their former spouse may be entitled to under California’s divorce laws. An experienced Irvine divorce attorney can counsel you toward a resolution that keeps your business and its holdings intact.
Even if you aren’t planning to divorce, there are certain safeguards you can put in place to ensure that an event like a divorce doesn’t threaten your business. Eager to learn more about what you can do to protect your business in a divorce? Below, we outline several key steps to keeping your business safe and sound during a divorce.
Maintain Good Records and Pay Yourself a Decent Salary
It’s best not to mix your home finances with your business finances, so try to refrain from borrowing money against your personal assets, like your home. Additionally, paying yourself a good salary is key to ensuring a court doesn’t order you to pay more out of your company’s assets down the line in a divorce.
Fire Your Spouse
If your spouse is actively involved in the business, it may be time to let them go. The more prominent your spouse’s role is in your company, the more likely it is that they will be able to retrieve a substantial portion of the business upon your divorce. Their attorney could make the argument that your spouse helped build the enterprise and should profit from its growth.
Be Strategic in Your Negotiations
In a divorce, your Irvine divorce attorney will work with you to calculate your total assets and debts and divide them as equitably as possible. If your primary goal is to keep your business, then you should consider that when determining what – and how much – you’re willing to part with.
Determine the True Value of Your Business
Hiring a knowledgeable and neutral third party to assess your business’ value is crucial to ensure you aren’t sacrificing too much in a divorce. Don’t allow an appraisal to calculate the value as a future projection, but rather make certain that they only evaluate how much it’s worth right now.
Contact an Irvine Divorce Attorney
If you’re currently considering divorce and are concerned about whether your business will be in jeopardy, you should work with an experienced Irvine divorce attorney who understands the unique complexity of your position. Contact our office today.