Not every marriage works out, and it helps to realize that and plan for it when you marry, especially if you are a business owner.
Establishing a business takes time and hard work, so you do not want to risk losing part of it due to issues in your personal life. The best way to protect your business is through a prenuptial agreement. Outlined below are two ways to safeguard your business from divorce.
1. Limit your spouse’s involvement in business activities
Unless the person you marry is already involved in the business, it could help to keep things that way. If your partner can establish a pattern of contribution to the company, it will make it simpler for them to claim a stake in your business in the event of a divorce.
2. Invest business proceeds back into the household
You can get so focused on growing the company that you reinvest virtually every cent back into it. However, this might not look good if your marriage ends. Your spouse might claim they saw none of the profits you made and seek financial compensation. They might argue that your business would not have done so well if you did not have them looking after your children and home. You can show that your spouse benefited from the company by paying yourself a regular salary and putting that money into the household.
If you are about to divorce, you will need help to revise any agreements you have in place and understand what, if any, of your business your spouse might claim under New Jersey property division laws.