Business owners in New York City might want to learn more about how a divorce can affect their company. If you are going through a divorce or think that there might be one in the future, protecting your business might be a priority.
There are things that you can do beforehand to protect your business. Divorce is messy and stressful enough; it should not be the reason for the disruption of your business.
Even in an uncontested divorce, there are claims to your property
All of your property may be at risk. This includes the following in addition to your business:
- • Money in a savings account
- Stocks and bonds
- Other assets
Distraction may happen
Because divorce takes an emotional toll, it is easy to become distracted and neglect the day-to-day operations. If your spouse is a important stakeholder, there could be another set of problems. During the settlement, they might receive a substantial amount of stock and then become a partner. This could have a chaotic outcome.
It could put your company in jeopardy
Complications may ensue if your ex is currently involved in the business in a senior capacity. Complicating things even more, they still have a say in the organization. They even have more of a say if they have received a portion of your stock, allowing them an stronger position.
What can you do to avoid this scenario?
The best thing to do is to protect your business before you get married. Here are some recommendations:
- • Draw up a prenup
- Separate your finances
- Put the business into a trust
- Pay yourself a good salary
- Take out a whole life insurance policy