Although any business you own is likely considered to be shared between you and your spouse, there are still ways to protect and divorce-proof your ownership to avoid losing it to your ex in a divorce. Forming an LLC, trust or corporation will allow you to create a separate entity that will hold its own assets separate from your marriage.
Keeping your business in a divorce
You might want to forfeit other assets in exchange for your business, which is a good trade-off if you’re seeking full ownership of your company. Paying yourself a competitive salary can show that your spouse benefited from the business when it comes time to evaluate how much each spouse contributed during the marriage.
How to get a valuation of your business when you file for divorce
Start by finding an unbiased valuation professional, which will allow you to get an idea of how much you’ll need to pay your spouse to buy them out. You can even have the valuation double-checked by another party.
Tallying the number of assets, including the inventory and equipment, and subtracting liabilities or debts will also make it easy to get an idea of how much the business is worth when you file for divorce. Performing a discounted cash-flow analysis with the use of a net-present-value calculation can also give you an idea of the business’ value.
Who can you contact for legal assistance?
Reach out to an attorney to help you protect your business after filing for divorce. The legal professional may review the details of the case and guide you through the whole process. An attorney may also assist in matters related to equitable property division, spousal support and mediation.