There is no way around it. When a marriage comes to an end, it can be difficult for everyone involved. Business owners in Florida who are facing divorce may find the process particularly arduous. Not only do major issues have to be sorted out, such as child custody and child support if children are involved, but how the assets should be split can involve a lot of complexities and complications.
So this begs the question, what happens to a business during divorce? Much depends upon how things were set up prior to the marriage and what types of protections are in place such as a prenuptial agreement or a post nuptial agreement.
Protecting business assets
Keeping financial assets separate is one way of ensuring a business is protected. When business owners use personal assets in their businesses, any profits may be considered to be marital property. Trusts are another way to safeguard business assets. When a business is part of a trust, the spouse who is part of the business no longer owns it. This can help to prevent the business from being included in any divorce settlement.
Other means of protection
Taking out a whole life insurance policy may also help to protect business assets in the event one’s marriage comes to an end. The policy could be activated if divorce settlement costs exceed available funds a divorcing spouse has. A pre- or postnuptial agreement is often ideal, but if one doesn’t exist, it makes legal guidance that much more invaluable. Seeking support and guidance from a lawyer experienced with complicated divorce issues can help prevent any missteps from occurring throughout the process.