While dealing with a divorce, many business owners in New York have felt that the divorce directly affected their business. Their spouse might have been awarded partial ownership, or the stress of the divorce might have made it harder for them to keep the company running. Here’s what people can do to protect themselves if they’re trying to run a business during a divorce.
How can business owners protect themselves during a divorce?
If the person’s spouse receives partial ownership of their business, they might find it impossible to maintain the business while working with their former spouse. They can leave the business by selling their stake in the company, which might also help them pay their legal bills. If they have full ownership over the business, they might consider selling it altogether and moving on with their life. However, they should be aware that the money they receive in the sale might also be divided up during the divorce.
If the individual wants to keep their business, they can put the business in a trust so that it won’t be considered a personal asset. However, this can be seen as transfer fraud if it happens right before the divorce. Business owners should always plan ahead to ensure that they’re protected in the case of a divorce.
How can people get help navigating through a divorce?
Working with an attorney may help a business owner protect their assets during the divorce. The attorney might help their client figure out the best way to proceed, whether it’s selling their stock in the business or offering their former spouse a different piece of property. The attorney may also assist them in dividing up the rest of their financial assets. As a result, both parties might be able to come to a fair agreement.