Ways to protect business assets in divorce
Many California residents also happen to be business owners. Any number of issues can have an impact on a company's bottom line and perhaps even place a business owner's best interests at risk. One such issue is divorce.
There have been many people who have learned the hard way that they should have done more to protect their businesses before they got divorced. A woman in another state told how devastating it was when her husband showed no support during marriage while she was building a profitable business but later walked away with substantial assets after property division proceedings took place. Her story is definitely not an isolated event as many other business owners tell of similar experiences.
There are several things business owners can do to protect their assets, especially in divorce. The first is to sign prenuptial agreements if they plan to marry. While some might think the idea unromantic, it is one of the easiest and surest ways to document separate ownership of property. Californians, in particular, may find this option beneficial since it is one of nine states in the nation that continue to operate under community property laws, meaning spouses typically split all marital property 50/50 in divorce.
Business ownership can also be protected in divorce by transferring the company to a trust before the wedding takes place. While both parties must sign a prenuptial agreement, one need not consult a fiancee when creating a trust. A California business owner might wish to consult an experienced attorney, however, as there are many restrictions and complex issues that may apply.