If you own a business in Ohio, you naturally want to protect it from all types of risks. Divorce is just one potential risk facing entrepreneurs, who could lose control of their enterprise if the proper measures aren’t taken. The financial loss can also be great, in addition to setting back all the hard work it took to make your business a success. The first step in protecting your interests is to create a prenuptial agreement before you get married.
As explained by Forbes, a prenuptial agreement legally defines property and asset ownership for both parties before a marriage takes place. Many people are reluctant to bring up this topic since it presumes that the marriage will end in divorce. This is a huge misstep for business owners, especially those who see their efforts grow over the course of a marriage. While the conversation may be uncomfortable, it’s better to have important financial discussions before issues occur.
Of course, not all couples actually go through with a prenup, but in this case there are other options you can utilize. Inc. states that your spouse’s interaction with your business and its practices will be considered during the property division process. If your spouse has little involvement, be sure to document that now. Also, keep business and personal finances separate. It’s easier for exes to claim a share of the profits when accounts aren’t kept isolated.
You can also alter the business itself to ensure it remains protected. By changing ownership to a living trust you’ll prevent your former partner from claiming a share. You can also look into changing to a corporation or LLC, which have strict rules about ownership. No matter which option you choose, it’s best to take these steps with the assistance of an experienced attorney well before the divorce is in motion.