For many entrepreneurs in Kansas, their businesses are the result of many years of hard work and dedication. Even though building a business is often a challenge with many risks involved, it can also be one of life’s most rewarding undertakings. In the event of a divorce, however, those who own businesses could lose much of their accomplishments if they are not prepared. Here are a few ways to protect a business amid a high-asset divorce.
If a business owner ends his or her marriage, there is a possibility that the business could be divided. However, by signing a prenuptial agreement, the business can be protected from divorce. In a prenuptial agreement, the business can be classified as a separate asset, which could prevent a spouse from obtaining part of the business if a divorce were to happen. Without a prenuptial agreement, the business could be subject to property division in a divorce.
Also known as a business will, a buy-sell agreement can also protect a business in the event of divorce. Essentially, a buy-sell agreement allows partners of the business to buy out the owner’s share of the company to keep the spouse out of the business. Those who go this route may want to consider having adjustable payment terms in the agreement, such as installments paid over a set period of time.
When it comes to protecting and preserving their livelihoods, most business owners will do whatever it takes. Those who want to shield their businesses from a high-asset divorce should never attempt to go at it alone. Kansas residents who have questions or want to know more about asset protection in a divorce may want to consult with a seasoned legal representative. A trusted and knowledgeable attorney can offer much-needed guidance and help individuals protect their rights and financial interests.