Residents of Louisiana may want to learn more about how a divorce can affect their business. You’ve spent time building a business, hoping for its success and may now need to know what happens when you divorce your spouse.
A marriage that ends in divorce is difficult, emotionally. There are some things that you can do to lessen the stressful financial aspects of divorce. When there is a business involved, things may have complications, so you may want to prepare. According to business sources, you do not have to endure disruption.
All income and assets acquired by the spouses during their marriage are considered marital property. Even with an uncontested divorce, this property will have to be considered. Marital property could include the following:
- Savings accounts
- Additional assets
Community property or equitable distribution is the law in Louisiana. That results in a split of 50/50.
Your spouse could become your partner (in business)
If your divorced spouse receives a substantial portion of your stock during the settlement, they could become an uninvited partner. This could be chaotic in the day-to-day affairs of the business. That spouse has a choice, however: Selling the stock or remaining in the business.
You can solve some of the problems in advance
By executing a prenup before the wedding, you may deal with some of these issues. You may also want to keep your home from being collateral in the business. These assets should be separate. You may also want to pay yourself a decent salary.
Not owning the business
By putting the business into a trust, you no longer have something in your name that is part of the settlement of your divorce. You might also consider taking out an insurance policy. A whole-life policy allows you to liquidate it if you need to get more cash. You will not have to sell part of your business if you are in a bind.
If it’s too late, think about selling the business. You can also sell a stake in the business or make payments over time.
A fairytale ending may not be possible in your marriage when divorce happens. It may affect your business.