The divorce process typically involves settling highly contentious issues such as child custody and the division of property. One further aspect worthy of consideration during a separation is business interests.
You have likely put many years of work into establishing your business. As a result, it is worth thinking about methods you could employ to protect it. Outlined below are three ways to protect your business in the event of a divorce.
Clearly distinguish between personal and business accounts
It may be beneficial to you to ensure that your business accounts and personal accounts are fully separated where possible. Financial business activities involving both business and personal accounts could factor into rulings over whether your earnings are deemed separate or marital property.
Clearly define ownership of the business
It is important to consider whether you solely own and contribute to the running of the business or whether your partner may have a legitimate claim to it being shared. A business may be considered marital property if both spouses have contributed in terms of finances and effort.
Alternatively, the business may be considered as your separate property if it was inherited, gifted solely to you or acquired with your own separate funds.
Ensure that you solely manage business operations
If you have run the daily operations of your business independently, it could be beneficial to make sure that things remain that way. A judge’s misperception that you two ran the company jointly could play a major role in their decision on how to best divide your family business.
Recognizing methods that could protect your business during divorce proceedings could be in your best interests. As a spouse in Ohio, it is important to remember that you are legally protected.