You poured your heart and soul into your company. You have every reason to want to protect it. Most people who start their own businesses invest significant amounts of their own time and money into making something financially successful. All of that investment can pay off with enough hard work, allowing you to support yourself and your family with the business you created.
Unfortunately, your business is an asset that could be subject to division in the event of a divorce. Depending on the circumstances of the creation of your company, your spouse may receive some portion of the business in the divorce.
How do the courts handle splitting a business up?
Dividing a business as an asset is a complicated process. Many different factors will impact the best way for the courts to handle things. In some cases, especially if one or both spouses wish to remain active in the business, the courts may allocate partial ownership to the other spouse.
In other cases, they may determine that the spouse who started the business should pay spousal support as a means of sharing the assets invested in the business during the marriage. Working with your ex or paying a significant portion of your income from your business to your former spouse are hardly ideal outcomes. You should look into your options for protecting your business.
Barring legal protection for your company in the form of a prenuptial agreement, assets, including you business, are subject to division in a divorce. This is particularly true for assets you acquire during the marriage. If you created the business while married, your spouse could have a legal claim for some of the value.
Mediation puts the power in your hands to keep your business in your control
The courts only have the final say in what happens to your assets and your business if they manage the process of dividing your assets. If you and your ex choose to go through mediation instead and then file an uncontested divorce, you retain total control over the outcome.
Mediation can be an ideal solution for business owners about to divorce. Not only can you negotiate terms that will keep both you and your ex happy, but you can also push for the most important factors, such as your own continued ownership of the company. By compromising in other areas, you can protect the assets you care about the most.
Even in mediation, having the help of an experienced divorce attorney is important. If you worry about the impact of leaving your spouse on your financial future and your business, then it is time to speak about those concerns with a divorce lawyer. Your attorney can tell you if mediation is an option for protecting your assets, like your business in Minneapolis.