Divorce can be challenging and emotional, especially when it involves the division of assets. For business owners, protecting their hard-earned business assets is crucial.
Understand The Legal Framework Surrounding Marital Property
Before taking any steps to protect your business, it is essential to understand the legal framework surrounding marital property. In New York, the Equitable Distribution Law governs the division of assets during a divorce. This law often considers the business as marital property if it was established or grew during the marriage. However, if the business was established before the marriage, only the appreciation in value during the marriage is considered marital property.
Establish a Prenuptial or Postnuptial Agreement
Establishing a prenuptial or postnuptial agreement is one of the most effective ways to protect your business during a divorce. These agreements can clearly define the ownership and division of assets, including the business, in the event of a divorce. It is crucial to consult with an experienced family law attorney to draft a comprehensive and enforceable agreement that meets your specific needs.
Separate Business and Personal Finances
Maintaining a clear distinction between your personal and business finances is vital in protecting your business assets during a divorce. This includes:
- Keeping separate bank accounts for personal and business expenses
- Not using personal funds to finance the business
By keeping a clear separation between personal and business finances, it becomes easier to establish the value of the business.
Consult With An Experienced Family Law Attorney
Protecting your business during a divorce is a complex and nuanced process. At Berkman Bottger Newman & Schein, our skilled attorneys can help you navigate divorce while safeguarding your business assets. We know that every divorce is different; that's why we will create a tailored strategy that meets your needs and protects the continued success of your business.