The dissolution of a marriage can bring many challenges to all parties involved, but it is especially difficult for people who own their own business. New York is an equitable distribution state, which means all assets must be divided fairly. This means that a business owner is likely to hand over at least part of the business to the former spouse. However, the amount would be ultimately determined by a judge, unless the parties can otherwise agree.
Divorce and daily business operations
As stated above, going through a divorce can bring in a number of challenges to a business owner. It is those challenges that tend to begin to affect the daily operations of a business. Everything from having meetings with your attorney to having to collect the proper documentation can really affect your ability to run your business. One of the things that tend to create issues is when the former spouse is now a part of the business. As a business owner, you do have the option of either offering to buy out your former spouse’s ownership or simply pay an ongoing portion of the revenues.
What are your options?
It can be quite daunting to think about how your business is going to be affected. Fortunately, there are a few safeguard measures that could be added before the marriage. One is having the matter addressed in a prenuptial agreement. Although it might not give you everything you demand, it is nevertheless useful to save some aspects of your business. In order for it to be upheld, however, both parties should have separate legal counsel to review it before it is signed, and it should be entered into well before the wedding day.