If you are a business owner, you’ve likely spent lots of time and hard work establishing your business and helping it grow. You may have put in long hours over the years, and eventually that took a toll on your marriage. Now, you’re facing divorce. You wonder how your divorce will impact your business. Will your spouse automatically receive half your business assets?
Property division in an Indiana divorce
Indiana is an equitable property division state in divorce. You will divide your marital assets with your spouse in a fair, equitable manner. The business assets you accumulated during your marriage are subject to property division in divorce unless you have a prenuptial agreement to protect them. If your spouse worked for the business, he or she may receive a larger part of your business assets.
You will need to have a valuation of your business, establishing the worth of your business, to divide your assets with your spouse. If you have a partnership agreement for your business, that may give one of your business partners the option of buying out your spouse. Or you may decide to give your spouse the marital home or a larger share of your retirement savings to buy out their share of your business assets.
If you want to avoid giving your spouse a larger stake in your business assets, you always should pay yourself a fair wage for your work and avoid using your personal money to fund your business. You also could establish your business as a trust to protect its assets.
Getting help with dividing assets
Business owners facing divorce need to consult an experienced divorce attorney. Your attorney can help you as you divide assets with your spouse, helping you minimize the impact divorce has on your business.
If you plan to continue running your business after divorce, you need to get the best outcome possible. Your business likely will take a hit in your divorce, but you still want it to survive.
