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How can business owners protect their company during a divorce?

On Behalf of | Oct 30, 2020 | divorce

Filing for divorce in Florida can be a scary undertaking for business owners. They may face the possibility of their spouses taking over their companies or seizing their share of the assets. Here’s how individuals who own businesses can protect themselves if their former spouses get involved with their companies.

How can those who own businesses protect themselves if their former spouses seize their assets?

While it’s a last-resort option, some people may prefer to sell their businesses after getting divorced. This prevents them from having to deal with their former spouses at work. While their former spouses deal with business operations, some people can cut ties with their companies and start over with different enterprises.

Some business owners can also consider signing a postnuptial agreement with their former spouses before initiating the divorce process. However, if the document is signed immediately before the divorce, the judge may throw it out. Additionally, it may be challenging for individuals who own businesses to get their spouses to sign a document that relinquishes their share of the company assets.

For these reasons, business owners need to plan ahead and protect themselves long before they file for divorce. The best option is to sign a prenup before getting married. Failing that, business owners can negotiate with their exes during the divorce process and offer another asset in exchange for full control over the company.

Who can help business owners during a divorce?

Filing for divorce can be an incredibly stressful time for business owners. A lawyer may help make the process easier for them. Working with an attorney, an individual may be able to negotiate with his or her spouse and retain control over his or her business. A business owner may be able to offer another asset in exchange or offer to buy his or her former spouse’s shares in the company.