Business owners often work long hours to provide the best standard of living for their families. The companies that they run may provide income to support the family and could even represent future employment opportunities for their children.
Plans for the future of the business and the family can all come crashing down when a business owner or their spouse files for divorce. Suddenly, nothing seems quite as certain. Those who have built thriving businesses naturally worry about the implications of divorce.
They may need support protecting themselves, their company, their other assets and their children throughout the divorce process. What do business owners need to know about divorce proceedings to protect themselves?
The business could be vulnerable
Some business owners sign marital contracts, such as prenuptial agreements, protecting their organizations. Without a clear written arrangement regarding the business, it could be at risk during the divorce process.
Any accrued equity during the marriage, especially business value acquired by investing marital income, is potentially subject to division. Business owners may need help calculating the fair market value of the business and then determining how much of that value is marital property.
They may also need to conduct a thorough review of the marital estate to prepare themselves for property division negotiations. Even when one spouse earns and owns far more than the other, anything accumulated during the marriage, including business equity and debts, is potentially subject to division during the divorce.
Business owners can share custody
Those who focus primarily on developing their careers may not spend much time providing child-rearing support. However, they have an opportunity to step up and correct that when they divorce. The courts do consider the prior involvement of both parents when deciding custody matters.
Thankfully, the courts generally want what is best for the children, which usually means keeping both parents as involved as possible. A parent who has previously centered their career can pursue shared custody and negotiate a parenting plan that allows them to balance their professional and family responsibilities. They can theoretically have liberal amounts of time with their children, even if their spouse was previously the primary caregiver.
Settling puts spouses in the driver’s seat
Those with complex circumstances may not want to litigate their divorces. If they do, they must defer to a judge’s determination on everything from how they share parenting time to how they address business equity.
People with specific goals, such as business owners hoping to protect their organizations, may benefit from working toward an amicable settlement with their spouses. They can set their own terms for sharing parental responsibilities and dividing the marital estate.
Spouses with more to lose during divorce, including business owners, generally need insight into the law and support during the negotiation process. Setting clear priorities early in the divorce process can help business owners and others facing high-asset divorces lay the foundation for a bright future after divorce.
