Most people do not prepare for a divorce in advance because they feel their relationship is strong enough to endure the ups and downs of life. However, this is a huge mistake that can lead to major financial loss, which is why it is crucial to prepare in advance. As a business owner, you protect your assets in the event an employee or client is injured on your property. Well, the same process should be followed when you get married, because nothing is for certain in today’s world. Below, you will discover several tips on how business owners can protect their assets in a divorce.
Males and females that are established financially will have difficulty discussing the prenuptial agreement with the person want to marry. Although this is a difficult topic to approach, it is crucial that you open up about your plans to protect your assets. If the individual you select to spend the rest of your life with is not interested in your money, they will gladly agree to sign the prenup. Of course, it will be an awkward situation, but if you choose the right person, everything will be just fine.
Domestic Asset Protection Trust
It is important to note that a prenuptial agreement is not bulletproof. In fact, many couples have signed this agreement prior to saying their wedding vows to no avail. The document can be contested in a court of law, which is why it should be combined with the Domestic Asset Protection Trust (DAPT), an advanced protection strategy for business owners and other people with financial assets that need protecting. Many wealthy families and individuals are utilizing DAPT to protect their assets from potential creditors and it also shows that it is a great form of asset protection in a divorce.
Get To Know The Person Better
Any dating expert or anyone that has been married and/or gone through a divorce will recommend getting to know your better will help reduce the risk of divorce. However, this does not always work, because people will date for a long time, get married and still end up divorcing after only a few months or years. Of course, it will reduce the risks, if you are willing to get to know the person better. Long-time dating is the best way to do this, plus you can also move in together, so you become more familiar with the individual.
It is also wise to do a bit of research on Common-Law Marriage because you do not want to get pushed into this type of marriage. These laws vary from state to state, but under the law, the couple is considered legally married despite never signing a marriage license.
Hiring A Reliable Lawyer
Before doing anything, it is essential to hire a competent lawyer. Failing to do so could result in your spouse walking away with your business and your personal assets. At the same time, you need to realize that your spouse is going to fight you tooth and nail. They’re going to want to ensure that their future is bright so you can guarantee that they’ll enlist assistance from a thoroughly experienced attorney. You need to do the same to ensure that you get as much as possible, while also remaining in control of your business. By hiring a good divorce attorney, you will receive assistance fighting for your assets.
More importantly, you will also have a backup in your fight for custody of your children. When it comes down to it, the safety of your children matters more than anything else. With this in mind, you should get in touch with a lawyer as soon as the divorce is filed.
Locking Out Your Spouse
Whether you run a partnership, shareholder or LLC, you should take steps to ensure that your spouse is locked out of your business. Within the operating agreement, you can add specific provisions to ensure that other owners are protected in the event that one gets involved in a divorce. Make sure that your contract with other shareholders guarantees that a prenup agreement is in place prior to marriage. The owner’s spouse should also sign a waiver stating that they’ll remain out of future business activities. Finally, the agreement should contain a prohibition on the transfer of shares without permissions from the other owners and shareholders. This will ensure that your business remains in the right hands whether you or another business owner faces a divorce.