Although weddings should be a time for celebration, the reality is that this is also a time to think about your financial future. One of the things that you need to be contemplating is the state of your business in the event the marriage does not work. It’s understandable not to want to think this way, but the fact is that many marriages in New York state and around the country do end up in divorce. Therefore, it is important to ensure that your business is protected in the event of a divorce.
You’ll want to concentrate on the financial implications of the divorce. One of the most important terms to familiarize yourself with is marital property, which refers to any asset that was gained throughout the lifespan of the marriage. This includes bonds, stocks and business ownership. Currently, nine states in the union split everything 50/50 during a divorce. The rest of the states are considered equitable distribution states where the division of assets is decided within the courts. If you don’t plan properly, a spouse could get a sizeable portion of your business in a divorce.
What are your options?
Perhaps the best option in your arsenal is to construct a prenuptial agreement with your attorney regarding your business. This is done before marriage and lists all the plans you have in regard to the distribution of company assets. If you did not create an agreement before the marriage, you do have one more option in the form of a postnuptial agreement. This should include the value of the company at the beginning of your marriage.
The state of your business should never be left to chance. This is why it may be helpful to seek legal advice from an attorney to determine the best possible course of action for protecting your company in the event of a failed marriage.