If you are a business owner facing a divorce, you may have questions about what will happen to your business once the divorce is final.
Fortunately, there are several different options you may utilize to keep your business if you want to.
Equitable distribution
Connecticut is an equitable distribution state. According to FindLaw, this means that a judge will determine how to divide assets in a way that is fair between you and your spouse. In order to do this, a professional must accurately determine the value of your business so that a judge can allocate it between you and your spouse.
Keeping your business
If you want to keep your business, there are different ways to negotiate with your spouse through this process. The most common method is usually to buy your spouse’s portion of the business. You can do this with a cash exchange, or even by swapping assets of equal value.
Selling your business
If the business is not something either one of you wants to keep, selling the business is also an option. Sometimes this is the easiest option, especially if you cannot reach an agreement to buy your spouse out.
Planning ahead
Although some people may find prenups offensive, they are a great tool when it comes to protecting your assets. If you own a business and you want to preserve it in the event of a divorce, a prenup is a good answer.
Even if you do not manage to draft a prenup, you can still create a postnuptial agreement at any time after you are married. If you think that business division could be a problem during a divorce, either of these documents will protect you, just in case.
