During the marital dissolution process in New Jersey, property division can understandably be a major source of conflict between two spouses. This is especially true when a high-value asset, such as a business, is at stake. Here is a look at what business owners can do to safeguard their business assets from a divorce.
First, business owners may want to create their own trust, LLCs or corporations. Completing the incorporation process is especially beneficial for business owners who have not yet gotten married. Creating trusts, LLCs or corporations is advantageous because this allows business owners to make their businesses separate entities that can hold their business assets. However, business owners would be wise not to utilize marital assets — such as money in a joint bank account — to pay for their business assets, as their businesses will then become marital assets, too. As a result, the businesses will be subject to property division during divorce.
Another way in which company owners can keep their businesses safe from divorce is to put together prenuptial agreements before they get married. Those who are already married can draft postnuptial agreements. In these legal documents, business owners can spell out exactly what they want to happen to their business assets if they end up getting divorced in the future.
Some business owners, however, find themselves facing divorce with no LLCs or prenuptial agreements or any other protections. In these situations, they can still complete divorce negotiations with the other party with the goal of preserving their business assets as much as possible. An attorney in New Jersey can help a divorcing company owner to strive for the best property division outcome and ensure that his or her rights are protected during each stage of the divorce proceeding.