I read an article today outlining some of the issues and solutions to handling businesses in a divorce. The article starts by stating that prevention is the best method
Some tips offered by the article are – i.e. having a clearly written premarital agreement that defines the limitations of a spouse to access assets of the business in the event of a divorce. The article goes on to talk about some strategies to minimize exposure during a divorce. For instance, the old adage “Document, document, document.” Documenting the source of funds used to start/maintain a business, the spouse’s involvement/lack thereof, and LLC structures can make a huge difference in the process of a divorce.
Lastly, the article also touches on the concept of paying yourself a market rate wage, and avoiding comingling of business and personal finances. Comingling, beyond a potential tax nightmare, can expose you to risk in a divorce. The take away here is that having organized, well documented, and clear documentation of any business interest as separate from community property is vital to minimizing risk to the business in divorce.
If there are any legal questions you may have, I encourage you to, please contact my San Jose Divorce Lawyer office. My San Jose Family Lawyer offices assists many people who are going through family law related issues. We have many Affordable San Jose Divorce Lawyer solutions for many different budgets. San Jose unbundled limited scope family lawyer.
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