Building a business and maintaining a marriage are actually similar in many ways; both require the investment of time and effort, but both are vulnerable to changing circumstances and misfortune. If you have established a successful enterprise during your marriage, you may be worried that a divorce could end your business, too. While divorce does impact finances, you can manage this by protecting assets.
The following are three tips that can help you accomplish this and safeguard your business in the process. Going through a divorce is difficult enough—you should not have to worry about the future of your company, too. Consider these tips as you consider finances in your separation.
1. Catalog funds and assets
The easiest way to lose something is to forget about it. If you want to protect your funds, accounts and assets, you will first need to catalog them with great detail. Make note of all of your business’ holdings as well as all of your liquid assets and physical valuables. This will help you protect them more effectively and ensure that you can advocate for your rights.
2. Understand the process
In addition to cataloging all of your assets, you should familiarize yourself with the process of property division. This is the part of divorce that poses a threat to your business and assets. Your ex could conceivably argue for division of your property, including your business, as part of a settlement. Not all property is subject to division, though, so it is important to understand what assets you can protect.
3. Separate any joint holdings
Of course, any holdings, accounts and assets that you and your spouse jointly possess will be subject to division during a divorce. It is a good idea to separate such items, and if possible, establish sole ownership prior to beginning property division. This can help you claim them as individual property rather than shared property—and this is especially important when it involves your business.