If you have a high net worth, there is a good chance that you own or have a stake in a successful business. Should your marriage encounter trouble, a divorce poses a risk to your business assets. Without the right preparation or strategy, you might have difficulty buying out an ex-spouse and retaining control of the business. Ideally, you would have already prepared for the unhappy possibility of a divorce. A prenuptial or postnuptial agreement could have segregated the business from a marital estate. Alternatively, you might have created a trust to hold the company and shield its assets from the division of marital property. In the absence of a protective framework, an Indiana divorce lawyer can explain other options for protecting business assets during a high net worth divorce.
- Trade Other Assets
When you want to avoid selling a business to settle a divorce or prevent an ex-spouse from becoming a co-owner, you can try forging an equitable split by giving up other assets. An ex-spouse might accept assets of equivalent value, such as a family home, vacation home, valuable collection, or even a retirement account.
- Pay Over Time
A business owner might have no choice but to buy out an ex-spouse when the marital estate contains substantial business assets. The buyout would pay for your ex-spouse’s share of the business and leave the company in your possession. Coming up with the money necessary for the buyout, however, could break your budget or even endanger future business operations. To avoid this stress, you can create a payment plan that spreads out the expense. Assistance from an Indiana divorce lawyer will help you develop the terms of a buyout payment plan.
- Accurate Valuation
No matter what approach you eventually take for protecting a business during your divorce, accurate valuation of business assets is essential. Accuracy will protect you from paying too much to buy out an ex-spouse. You should have a neutral third party to evaluate your assets, revenue, and liabilities and then ask another valuation consultant to review the figures.
Seek Legal Advice
Divorce imposes stress that can make it difficult to evaluate your choices. Guidance from an Indiana lawyer will inform you about your rights under the state’s business and family laws. You can obtain representation in both of these legal areas at Webster & Garino. Contact us today to schedule an appointment.
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