There are many married couples out there that have an extensive amount of assets, may they have been obtained prior to the wedding or after it. These assets obviously carry immense value, may it be literally or sentimentally. But one of the most important assets that some couples have, if not the most important asset, is a company.
Sometimes couples create a business together, but in other cases one of the spouses has his or her own business. It may have been a company that he or she founded themselves, or it could be a family-owned business. In either case, this is a very valuable asset. And if the couple gets a divorce, this asset will suddenly be a subject of property division discussions.
So what could the business owner do to protect his or her company? Are there preemptive steps that can be taken to ensure that the divorce doesn't strip him or her of one of their most prized assets?
There are two ways to protect your business from a divorce. The first is to get a prenuptial agreement. You can insert language into that prenup that protects your business from your spouse in case of a divorce.
The other way to protect your business in case of divorce is to take some precautionary measures with your business. Get a valuation of your business before your wedding day or near the date, allowing you to point to the valuation and how it grew over the course of your marriage if you have to explain yourself in a divorce. Also, you should not allow your spouse to work for the company, nor should you procrastinate or be lax with the financial records for your business.