Statistically speaking, almost 50% of marriages end. If you own a business, a divorce could put its future in jeopardy. However, there are steps that can be taken today to minimize the chances that your Montana company will be negatively impacted by the terms of a divorce settlement.
Businesses are often seen as joint property
A company is generally viewed as a marital asset that is subject to equitable distribution laws. However, it may be possible to retain sole ownership of an organization by including it in a prenuptial or postnuptial agreement. You might also be able to protect your interest in a business by putting it in a trust or by purchasing an insurance policy. The insurance policy can be used to buy out your spouse without having to liquidate the company or its assets.
Consider the impact a divorce could have on other stakeholders
The process of ending a marriage could take your focus away from running the company in an effective manner. If your spouse obtains a portion of the company, you may have to cede some or all of your decision-making power to them. Generally speaking, internal strife can cause a company’s stock price to flatten or decline. This might mean that other owners will lose money even if their shares aren’t diluted.
If you are going through a divorce, it is generally a good idea to do so with the help of an attorney. An attorney may be able to negotiate a settlement that allows you to retain full or majority ownership of your business. Depending on the facts of the case, you might also be granted the right to remain in the family home or receive child support payments from your spouse.