How To Protect Your Business in a Divorce
For most business owners, their company is the single most valuable asset that they own. However, this can cause significant difficulties when it comes to filing for divorce. Thankfully, there are steps that business owners can take to protect their interests during a Florida divorce. To learn more about your legal options from an experienced Boca Raton divorce lawyer, call or contact the Law Offices of David L. Hirschberg today to schedule a consultation.
Prenuptial and Postnuptial Agreements
One of the easiest ways to protect business interests in a divorce is through the use of prenuptial and postnuptial agreements. These documents identify property interests for each spouse either before (prenuptial) or after (postnuptial) a wedding. If drafted properly, these instruments take precedence in a divorce case, and they can specify that business interests remain solely the property of the business owner in the relationship.
Utilize Buy/Sell Agreements
Utilizing buy/sell agreements is another way to protect your business interests in a divorce. Certain types of business entities, such as partnerships, can use operating agreements with buy/sell provisions to protect owners if one or more get divorced. They can require unmarried owners to get a prenuptial agreement, waivers by spouses of future interests in the business, and the right of first refusal to buy out shares before a divorcing spouse.
Prepare to Pay Off Your Spouse
If nothing else, one final option is to pay off your spouse for the interest in the business. This may entail a lump sum payout, or payments over time. Another option is to give up enough marital assets in the estate during property distribution to offset the value of the business in order to retain full ownership for yourself. As an equitable distribution state, the division of assets must be equitable, but not necessarily equal. Depending on how valuable the business is compared to the rest of the marital estate, it may also be necessary to do a combination of both options to keep the company in its entirety during a divorce. Talk to a divorce attorney today to learn more about what options are available to you if you would like to keep control of your business during a divorce.
Call or Contact Our Office
If you would like to learn more about how to protect your business interests in a Florida divorce, call or contact the Law Offices of David L. Hirschberg to schedule a consultation with a knowledgeable divorce attorney today.