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Tips for business owners filing for divorce

On Behalf of | Oct 16, 2023 | Divorce, Property Distribution

Many people going through a divorce are concerned about protecting their most valuable assets to ensure financial stability in the future. For example, business owners may have invested significant time and money into their business, and therefore, want to make sure that they do not lose ownership of that business in their divorce.

In equitable distribution property division states like Indiana, the judge will determine a fair and equitable way to divide the business between you. However, many things can factor into that determination.

What can you do to protect your business in your divorce?

There are certain things you can do to give yourself the best chance at holding on to your business in a divorce. Here are a few suggestions:

  • Sign a prenup: If you own a business, prior to marriage, you should consider a prenuptial agreement. You may specify in your agreement that you will remain sole owner of the business if you ever get a divorce.
  • Value your business: As most business owners know, the value of a business is more than just profits. A business appraiser can assist with the valuation process. This should be undertaken by an experienced appraiser or evaluator who is able to testify competently in court if needed.
  • Keep good records: You should keep track of all documentation relating to your company including bank statements, vendor contracts, and operating agreements.
  • Seek experienced counsel: Businesses can be complex assets to address in a divorce. Consider working with an experienced family law attorney that has valued businesses involved in divorce so that you will have access to the best possible advice.