How to protect your company while going through a divorce

On Behalf of | Jun 16, 2022 | Family Law |

Each year, many New Jersey married couples can no longer make things work and decide to end their marriage. Going through a divorce is a stressful enough time. Unfortunately, things can get even more so when your business is potentially on the line. With that said, there are ways to help ensure that divorcing doesn’t place your business in jeopardy.

Sign a nuptial agreement

Depending on how long you’ve been married, you could have your partner sign a post-nuptial agreement. This type of agreement is commonly used to prevent future contentious divorce matters from arising. A post-nuptial is similar to a pre-nuptial agreement except it’s for couples who recently tied the knot. It is a good option for recent newlyweds who want to protect their companies.

Negotiate with your spouse

If you and your estranged spouse are on somewhat good terms, you can work with them to protect your business. One way many divorcing couples do this is by negotiating with one another. For instance, a husband could give his wife their shared home to protect his business in a divorce.

Place your company into a trust

Another way that people protect their companies is by placing them into trusts. If you were to do this with a company you own, ownership of this business goes into the trust’s name and not yours. If you no longer own your company, it’s highly unlikely that your spouse would be able to take it from you.

Going through a divorce isn’t easy, especially when a company you own is at stake. Fortunately, the previously mentioned tips should help ensure that it doesn’t mean losing your business.