Business owners who are learning how to separate from your spouse have to protect their most valuable asset – your business.
Entrepreneurs know that there are long hours and unpredictable income when you have your own business. It’s understandable that can lead to strain on the marriage and end in divorce.
While there are no real statistics kept about the divorce rate among entrepreneurs, the general consensus is that the divorce rate among entrepreneurs is much higher than the general population.
Are you considering a separation or divorce? Read on to find out how you can protect your business in a divorce.
What’s the Worst-Case Scenario?
The main question you’ll ask when you’re reading about how to separate from your spouse is whether or not you can lose your business. It’s not like you’re Jeff Bezos and you’re going to lose billions of dollars and potentially half of the empire you built.
Your business will still be impacted one way or another during the divorce process. At the very least, you can become distracted by the divorce and have to turn your attention away from your business. That can result in a drop in service to your clients.
One worst case scenario is that your spouse tries to sabotage your business by calling your clients and airing your dirty laundry. You’ll lose clients unless you have a plan or an agreement in place to prevent this.
One of the first thoughts around divorce is having to give up half of what you earned during the marriage. This could be your business, which you may have to sell or have your ex become a business partner. It could also mean homes, savings accounts and investments.
How to Separate From Your Spouse Without Losing Your Business
There are ways to divorce without losing your business. That’s because there are exceptions to your business being considered marital property.
If you inherited the business, start it before getting married, have a prenup or post-nuptial agreement in place or have the business in a trust, it’s considered non-marital property.
There are a number of cases where business owners start the business after they get married. In that case, you can get a post-nuptial agreement that spells out what happens to the business in the event of divorce.
Regardless of your marital situation, you’ll want to check with a divorce attorney now to make sure your business is protected.
Divorce Isn’t Easy, But You Don’t Have to Lose Everything
Being an entrepreneur isn’t easy. Juggling a marriage and your business is one of the biggest challenges an entrepreneur can face.
Before you get married, it does help to know how to separate from your spouse without losing your business. Even if you already got married, it is possible to protect your business now just in case you need to separate or divorce.
Would you like to get more great business advice? Check out more of the blog today.