When people get a divorce, they may think they will only have to divide their personal property. However, small business owners may have to divide their business property with their spouse as well. Business owners usually work hard to build their companies, so it is a good idea for them to know how they can protect their business assets in the event of a divorce.
Many people may think they are the sole owner of their business assets if they started the company before the marriage. According to Business.com, business assets may become marital assets after the business owner marries. This means that in a divorce, these assets are typically divided between the spouses. Because of this, it is a good idea for people to write a prenuptial agreement to protect their business assets.
When business owners write a prenup, it is important for them to make sure they have their company records in order. This can help people demonstrate that they have kept their business and marital assets separate. This prenup should also include a clear statement of the assets each spouse possesses. This can establish that a business belongs to one spouse and not the other. Additionally, it may be a good idea for people to consider the debt each spouse has. After a divorce, someone may become liable for the debt his or her spouse accrued. It is important for business owners to establish that they are not responsible for an ex-spouse’s debt so they do not have to expend their business resources.
It is important for people to remember that a prenuptial agreement can sometimes have drawbacks. The National Federation of Independent Business says that one spouse cannot coerce the other into writing a prenup. If one spouse did not agree to draw up this document, the prenup may not be valid. Some business owners may think it is all right for them to conceal some assets from their spouses so they do not have to divide these. However, a prenuptial agreement typically has to include all of the assets each person brings to the marriage. The document may be invalid if one spouse attempts to conceal property.