How To Protect Your Business From A Divorce
During a divorce, a business owner may be able to protect their asset from being split with the other spouse. This can be done by setting up a trust, or by selling the business to a third party. If you’re considering putting your business in a trust, or if you have any questions about how to protect your business from a divorce, talk to an attorney before making any decisions.
The main advantage to setting up a trust is that the assets within the trust are separated from any marital property. This means that they won’t be subject to any tax consequences when they’re owned by the trust, and they’ll remain separate even after the owner passes away. In addition, the money that’s paid to the trustees can be distributed to the beneficiaries, increasing the odds that the assets will be reachable during a divorce. In some cases, the court will compel the trustees to pay income to the beneficiaries.
If you want to divide your business equitably, you will need to have a proper valuation of the business. You can get a third party to do the valuation for you. This will ensure that you know the true value of the business, and the amount that you’ll receive. However, many business owners choose to do their own valuations. If you have an independent valuation done, this can help you plan for the future. Alternatively, you can hire a forensic accountant to determine the value of your business. Regardless of which approach you choose, you’ll need to make sure that your business has a proper operating agreement and buy-sale contract in place.
If you’re considering a divorce and are concerned about your business, you should consult with an attorney who specializes in family law. They can help you decide how to protect your business from a divorce, and they can advise you on the best way to do it. A common mistake that business owners make is downplaying the value of their business, or transferring money from their business to their ex’s account. If this is the case, your ex may have grounds to claim deprivation of your interest in the business.
Depending on the state in which you live, your business might be classified as marital property. This means that it will be divided in an equal or equitable distribution. The courts will take into consideration whether or not you and your spouse were involved in running the business. The spouse who runs the business more often will receive more compensation for his or her stake in the company. A spouse who doesn’t have a lot of involvement in the business will also have a stake in the company, but he or she will receive less compensation.
The most common way to protect your business from a divorce is to sell the business. You can also buy out the other spouse’s interest in the business. If you’re a small business owner, you might find that this is the only way that you can split the business. You can also create an irrevocable trust. Creating a trust can be a complicated process, so it’s advisable to consult with an attorney.
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
If you have any questions or in need a Divorce Lawyer, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
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West Jordan UT 84088
(801) 676–5506
https://www.ascentlawfirm.com
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