Division of assets is one of the most common issues to arise during a separation. While most Connecticut residents would immediately think of marital assets like homes and cars as ones requiring special attention, sometimes a business can come into play in the midst of a divorce. Thankfully, there are several courses of action that can be taken to help secure an individual’s business in the wake of the end of a marriage.
The first option is one that must have been taken in advance: a prenuptial or postnuptial agreement can help to secure both parties’ assets in the event of a divorce or separation. A postnuptial agreement can even be signed once the couple has agreed to divorce, provided they are still married at the time. However, not every divorce is amicable, and this means a postnuptial is not always an option.
In cases like these, it is important for the business owner to take stock of his or her business by means of an appraisal. This can be helpful in identifying how much the business has grown since the marriage began, since only that growth will be applicable to asset distribution. In more complicated cases in which the spouses are also partners in the same business, it can be helpful to have a clear partnership agreement down on paper to identify each spouse’s ownership interest and what it would take to buy the other out.
Divorce is a complicated process involving a number of different steps. Asset division is perhaps second only to child custody in terms of the level of complication it can reach. Therefore, Connecticut business owners would likely do well to seek out support in determining what is to be done with their business, preferably in advance of approaching the negotiation table.
Source: busnessinsider.com, “Here’s how to protect a business from divorce”, Jacqueline Newman, June 8, 2015