Protecting Your Small Business During a Divorce in Maryland

The Power of Prenuptial Agreement in Protecting Your Hard-Earned Assets

Divorce can be a complicated process for small business owners in Maryland. Still, with proper planning and the assistance of a qualified divorce lawyer, you can protect your business interests and ensure effective strategies for protecting assets in divorce.

Marital assets, including a successful business, are subject to equitable distribution, which can be complicated if business partners are involved. That’s why having an experienced family law attorney from a reputable law office like Divorce With A Plan is important.

Tips to consider for protecting your small business during a divorce.

• Obtain a prenuptial or postnuptial agreement: Getting a prenuptial or postnuptial agreement can help protect your business in case of a divorce. These agreements will specify how the business will be divided between the parties in the event of a divorce. It can also help establish the value of the business before and after the marriage.
• Keep business and personal finances separate: Keeping individual financial records for your business and personal finances is essential. This can include maintaining different bank accounts, credit cards, and accounting records. By doing so, you can help prove the business’s separate property status in a divorce.
• Consult with an experienced divorce attorney: A divorce attorney with experience handling small business divorces can provide valuable guidance on protecting your business interests. An attorney can also help protect your rights and interests during divorce.
• Consider a buyout or settlement: If you and your spouse are interested in the business, consider a buyout or settlement agreement allowing you to retain control. This may involve buying out your spouse’s share of the business or dividing the business’s assets excellently for both parties.
• Obtain a business valuation: Obtaining a professional valuation of your business is essential. This can help determine its fair market value and establish the business’s separate property status. It can also help determine how much of the business’s value is marital property subject to division in a divorce.
• Review and update your estate plan: Consider reviewing and updating your estate plan, including your will, trust, and powers of attorney. This can help protect your business interests in case of helplessness or death.

Protect your Business in a Prenuptial Agreement

A prenuptial agreement helps protect your business by specifying how you will treat your assets and income during a divorce. Here are some ways a prenuptial agreement can help:

• Clearly defines ownership: A prenuptial agreement can establish that your business is your separate property and not subject to division in a divorce settlement.
• Protects against future claims: By deciding in advance how to divide business assets if a divorce happens, a prenuptial agreement can prevent disputes and reduce legal conflicts.
• Limits spousal support: A prenuptial agreement can limit the spousal support a court may award in a divorce, helping to protect your business income.
• Can protect business partners: If you have business partners, a prenuptial agreement can protect their interests. It ensures that a divorce settlement doesn’t give your spouse control or ownership of the business.