Divorce is never pretty. Even if you and your spouse are on the exact same page, it’s rare to have divorce proceedings where everyone walks away completely content with the situation. A factor that can cause extreme tension in this situation is business assets. Naturally, all business owners want to protect their business assets and wealth in the event of divorce. If you’re in this situation, you may wonder if your spouse may end up with far more than they deserve, especially if they had no hand in the business at all. The good news is there are ways to protect your business during a divorce.
This guide is split into two sections. The first is tailored to those considering marriage or who are newlyweds and are curious about how to protect what they have acquired. The second is for those who are already in the process of separation and considering their next steps.
Protecting Business Assets Before A Divorce
The best way to start protecting your business during divorce is to prepare for this situation well in advance. If you and your partner have a plan in writing, this can offer a clear guideline on what happens to business assets achieved pre and post-marriage should the marriage end. The hope is that you’ll never have to use one of these agreements and the protection it brings. Still, it’s a good safety net because you never know where you’ll be in 5 or 10 years.
These proactive agreements aren’t a perfect solution for protecting your business because some are deemed unenforceable. This can depend on the clauses in the agreement and future situations that could make those null and void. A top Maryland divorce lawyer can help you go over these agreements in contested divorces to ensure everything is secure.
Pre-nuptial Agreement
One of the best routes to take if you’re two successful business owners entering into a marriage is to work with a Maryland legal team on a prenuptial agreement. This written agreement, signed and accepted by both parties, forms an agreed plan of action for the future. You can come to an agreement on which assets will become marital property and which will remain separate. Many individuals prefer to keep everything acquired before marriage separate so every personal achievement remains theirs. That way, new spouses marrying into a wealthy enterprise can’t take more than their fair share. A business created as a couple or any additional joint venture in marriage could be marital property. You and your partner can enter into this agreement with legal counsel to ensure everything is accurate and on the table.
Post-nuptial Agreement
The alternative to a prenuptial agreement is to get one after marriage. This option is a good lifeline for those who married before considering the potential benefits of a prenup or those whose financial situation has altered significantly during the marriage. In the latter situation, it could be that a business you built when you were single has suddenly become successful now you’re married. You may feel the best way to protect that business in the future is to set up a post-nuptial agreement. This option is going to depend on how your spouse takes the idea. If they have their own personal wealth and venture, they may see the benefits. Either way, it’s a good idea to talk with a Maryland legal team to determine the best approach.
Protecting Business Assets After Separation
If you and your spouse are already separated, the ship has already sailed on pre and post-nuptial agreements. The next step is to look into ways of protecting your business assets through divorce proceedings without one. Two of the most common approaches for those looking to be as fair and amicable as possible are negotiation and mediation.
Expert divorce lawyers can help you with both of these situations, even if neither of you has any intention of taking the divorce to court. You can hire a legal representation to go over business assets and potential asset divisions while acting as a neutral third party. This support helps ensure everything is correct, and you can protect what’s yours with ease.
Negotiation
Ideally, you’ll only need to turn to a Maryland divorce lawyer for advice on handling your assets, and you will be able to reach an agreement yourself. Couples who have separated on amicable grounds for the same reasons may have little to dispute and will be willing to take their own business assets and part ways. These negotiations can be a simple and informal way of dividing up finances and possessions for those with nothing else to lose. You can come to terms, file for divorce, and move on.
Mediation
In other cases, the terms of the agreement won’t be so simple, and the meeting may not be as friendly. That’s where the legal team hired for advice becomes an objective voice in the same room. They will sit with you and help you both go over everything you need to discuss and divide up, including the rights to business assets. They can also help determine if there are any issues with what’s been disclosed.
Contested Divorce And Business Assets
A final factor to keep in mind with business protection and divorce is the risk of contested divorces. This isn’t likely to be a problem if you and your spouse are still friendly and happy to work amicably with full transparency. The problem comes when one party is deemed to be concealing assets – either knowingly or accidentally – and the settlement is contested. This is where cases can end up in court. Here, divorce lawyers are mediators but also actively working to defend your rights in a messy situation.
Always Seek Legal Help During A Divorce
Whether you’re dealing with an amicable separation with a prenuptial agreement, a contested divorce with a post-nuptial agreement, or anything in between, you need a good lawyer. At the very least, these legal experts can guide you on how to reach the best possible outcome for everyone concerned. Hire a Maryland divorce lawyer with plenty of experience and positive results under their belt. Your business will thank you for it.
