An impending divorce can throw many facets of your everyday life into disarray. It can be difficult to maintain a sense of normalcy during a divorce, but the one thing you may want to protect above all else is your business.
Wisconsin is a community property state, meaning that any property a spouse obtains during a marriage is subject to asset division during divorce. There are a few effective ways that you can protect your business from the disruptive distribution of marital assets
1. Sign a Marital Agreement
If you and your spouse sign a prenuptial or postnuptial agreement, you may include terms stating that your business is not subject to asset division in case of divorce. Such an agreement can be a powerful preventative measure, though it is an untimely option if divorce is already underway.
2. Separate Your Spouse From the Business
If you anticipate divorce in the future, it may be time to ease your spouse away from the business. The less involvement an individual has in the business, the less of a claim they may have during asset division. Other ways to separate your marriage and your professional life include keeping separate banking accounts or incorporating your business.
3. Keep Records of Your Spouse’s Involvement
Keeping meticulous records is one way of preventing your former spouse from claiming more of your business assets than they otherwise could. A divorce attorney can use such records as evidence to advocate for your financial rights.
In the absence of a more preferable arrangement, one remaining solution is to sell the business and divide the finances. Your divorce lawyer can help you reach the most beneficial resolution to your case.