Protecting one's assets during a separation can seem overwhelming. As more Connecticut women dive into the responsibility of business ownership, the thought of breaking the company apart during a divorce can be heart wrenching. Understanding the unique financial challenges that the end of a marriage can impose is crucial to ensuring that the division of assets is fair and comprehensive.
A prenuptial agreement is usually advisable before tying the knot, especially when one or both spouses have considerable assets prior to the union. But advice is not always followed and some may have started and grown a business with their soon-to-be ex-spouse during the marriage. Regardless, having a firm grasp on the current net worth of the company, growth potential and all liabilities prior to divorce negotiations will shed light on the true value of any potential equitable payout.
Once an accurate and true understanding of the company's value is attained, moving forward with how to divide the business with an ex-spouse should be considered. If direct property division negotiations do not result in a settlement, all unresolved issues can be submitted to a judge for a decision. All marital assets will be examined carefully, including any business interests subject to equitable distribution. All the hard work, financial backing and effort of getting the company started and the task of keeping the business afloat is considered.
Connecticut family law is challenging to navigate for business owners who are going through a divorce. An experienced family law attorney can help business owners who are considering or are currently in the middle of a divorce to properly address all material issues. Understanding all of the possible outcomes under consideration with regard to the business is crucial in maintaining one's proper and rightful share.
Source: Forbes, "How Divorcing Women Entrepreneurs Can Get What They Deserve", Kerry Hannon, Nov. 2, 2017