According to statistics, one in two marriages will fail in New Jersey. Often the dissolution of a marriage is what is best for both individuals. However, the end of a marriage can also lead to further, more complicated problems. This is especially true if you own your own business. Understanding how a divorce will impact your business is one of the most important areas of research. Thus the following includes detailed information regarding this area of the divorce process and how you can protect yourself.
What is the financial impact of a divorce?
Besides needing to craft a child custody agreement (if children are involved), you will also need to understand the divorce’s financial implications on your business. Even if your ex-spouse isn’t asking for anything, there may be claims on your personal assets. One of the reasons this may occur is due to something called marital property. Marital property involves assets that are obtained during a marriage. This means if you created your business during your marriage, the courts might require you to split it with your ex-spouse. Some states, such as Texas, will require couples to split everything 50/50, while others might divide assets through the courts.
How to protect your business
When it comes to protecting your business, you can do a few things, depending on what part of the marriage process you are in. For example, if you are not yet legally married, you may opt in to have your future spouse sign a prenuptial agreement. The prenuptial contract will layout certain agreements regarding your business in the event that your marriage fails. If you are already married but want to ensure that you protect your business, then it is vital that you do not use marital funds to start it. Martial funds may include savings and assets, such as your home.
You can take the proper steps to ensure that your business is protected as much as possible, but the fact is that small errors and claims may occur. Therefore it is incredibly important to receive proper legal advice from an attorney before creating prenups or starting your business during a marriage.