The process of going through a high-asset divorce can be daunting. Moreover, the division of a business is among the most complex issues of divorces involving valuable assets. If you are in a high-asset divorce, what steps can you take to protect your business and financial future?
First, spouses may use their prenuptial and postnuptial agreements to specify the division of their assets in the event of a divorce. According to the California Family Code, such legal documents can define what is separate and marital property and indicate how to divide or value a business. Also, they can ensure the protection of a business from division or sale during the divorce process.
Maintain accurate financial records
In addition, having accurate financial records is crucial in protecting a business. Keeping personal and business finances separate provides a clear valuation of a business and can prevent disputes over its value. This can also help to ensure that a business is not overvalued or undervalued during the divorce.
Consider mediation
Meanwhile, mediation is a process wherein a neutral third party helps the spouses negotiate a settlement. This could provide a more private and less adversarial process. Additionally, mediation allows for more control over the outcome, which can be beneficial when it comes to protecting a business.
Consult a business valuation professional
In addition, a business valuation professional can give an accurate valuation of a business. They can help reach a fair settlement that protects a business and provide expert testimony in court if necessary. They can also help identify issues that could affect the value of a business, such as debts or liabilities.
Pay yourself a competitive salary
Finally, paying yourself a competitive salary can help establish a clear financial boundary between you and the business. This can influence the amount of spousal support you might need to pay. Further, it can help protect a business’s assets by reducing the amount of spousal support.
Aiming for your fair share
Protecting your business during a high-asset divorce requires careful planning and strategic decision-making. With legal guidance, you may navigate the process while aiming for the fair share that you deserve.
