Going through a divorce may entail vying for marital property against your soon-to-be ex-spouse. Matters regarding important possessions, the family home and even your private business can escalate into heated conflicts.
Ohio laws on the equitable division of marital property ensure that both parties in a divorce receive their fair share, even if that means splitting your business down the middle or liquidating it to the point of halting your operations. It is important to know how you can protect your business in a divorce so your livelihood will not be in jeopardy.
Sign a written agreement
Entering into a legally-binding agreement with your spouse is the best way for both parties to secure their priority assets in a divorce. Prenuptial and postnuptial agreements are common contracts for married individuals to draft ahead of time, but you can also compromise on a separation agreement outside of court at the time of divorce.
Distance your spouse from business operations
If your spouse plays a role in the day-to-day operations of your business, they will have a stronger claim to business-related assets in a divorce. If divorce seems imminent, it can be to your benefit to distance your spouse from the business as much as reasonably possible.
Get an accurate business valuation
Knowing the exact value of your business can help you gain leverage in divorce negotiations. With an accurate and unbiased business valuation from a professional appraiser, you can reach a fair compromise with your spouse regarding which assets to give and take in exchange for your continued ownership of the business.
It is easy to find your life upended in the aftermath of a divorce, but you can take steps ahead of time to ensure you have a clear way forward after the split.