Business interests could be at risk during high asset divorce
Successful businesses can often result in Kentucky residents accumulating a considerable amount of money. While these funds may have allowed them to live the lives they desired in a comfortable manner, they could also lead to a high asset divorce in the event that a couple choose to end their marriage. Because this possibility is likely on the mind of many business owners, they may wish to consider how to protect their assets.
Many efforts to protect business interests in the event of divorce could also help in general business practices, especially if spouses are co-owners of a business. For instance, relying on written agreements rather than oral agreements could help avoid conflicts. Certainly, married owners may think that they can work together without formal documentation, but should that relationship turn sour, the business could be negatively impacted due to lack of having agreements on paper.
One type of agreement that may prove useful even if the business co-owners are not married is an owners’ agreement. This document could detail how certain events, like divorce, could impact business assets and each owner’s business interests. Because personal issues could easily derail an otherwise successful company, having this type of agreement in place could protect each owner.
Another document that could potentially help protect business assets is a prenuptial agreement. Business owners may wish to consider creating such a document before they tie the knot. In the event that a high asset divorce does take place with business interests at stake, concerned Kentucky residents may wish to consult with their legal counsel regarding their best options for protecting and maintaining their assets.
Source: bizjournals.com, “17 New Year’s resolutions for entrepreneurs“, David G. Bates, Jan. 22, 2018