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How business owners can protect themselves during a divorce

On Behalf of | Oct 27, 2020 | Family Law

A divorce in Wisconsin doesn’t just mean the end of a relationship. In some cases, it can also mean the end of a business. Here’s how you can protect yourself during a divorce and keep your former spouse from intruding on your business.

How can business owners protect their company during a divorce?

If you’re a business owner, one of the best things you can do for yourself is sign a prenuptial agreement before you get married. A prenup can protect your business assets in the event of a divorce. Your prenup might establish your business as a separate property that can’t be divided in the divorce. If you don’t sign a prenup before your wedding, it’s not too late–you can also sign a postnuptial agreement after you’ve gotten married.

You can also protect yourself by keeping your home and business finances separate. Don’t use personal collateral to invest in your business. If these two types of finances become entangled, your business might be considered marital property that can be divided during the divorce.

You can also take out a life insurance policy that you can cash out to pay for your legal fees. Otherwise, if you end up with legal debt after the divorce, you might end up having to sell part of your business to pay the legal fees.

How can an attorney help business owners through a divorce?

If you’re filing for divorce, an attorney might be able to help you protect your business interests. An attorney may help you divide up marital properties while keeping your personal properties separate. If your former spouse is involved in your business, your attorney might be able to help you negotiate a buyout so you can retain control of your business. They could also help you liquidate your shares if you decide to leave the company.