If you own your own company or have a professional practice and are experiencing challenges in a marriage, pre-planning a Louisville divorce will help a business owner to preserve the most options for protecting their interests and maintaining control of the their business interests through and after a divorce.
Why is it important to seek the advice and counsel of the experienced, proven divorce and family law attorneys at Dodd & Dodd if you are concerned about a potential divorce and how it will impact your business? Simply put, the wrong steps and proactive measures many business owners take in efforts to reduce the perceived value of their company can and often will be viewed by the Court in a negative light.
There are absolutely legal, moral, ethical and effective strategies for a business owner to consider if they are concerned about the potential for divorce or in the midst of preparing for one. Pre-planning a Louisville divorce will help a business owner to gain a better understanding of the process, how a business is characterized as a marital, separate or blended asset, as well as the issues of valuation.
One of the most important things to keep in mind is accurate record keeping. This is especially true if your business has any sort of a “cash” aspect to it, or if your operations typically involve substantial swings in business income and loss (versus a fairly stable pattern of business or income). Generally speaking, keep the business completely separate from marital funds and even work performed by your spouse. If your spouse has an active role in the company we will need to give consideration to options for how that will be handled as you prepare for a divorce, during the proceedings and after the divorce is completed.
Avoid the temptation to attempt to manipulate the books or income, or to move assets or accounts out of your name without strong legal counsel. Many business owners have paid a steep price for attempts to mislead the valuation process, up to and including the loss of the business itself. We are often able to help clients to prepare for and open a conversation about a “postnuptial agreement” which would clarify the nature of the company and how it might be handled in the divorce. Negotiations and mediation can keep your personal business private, while providing opportunities to improve your position while reducing risks. That’s simply good business.
We invite you to review the strong recommendations of our former clients and contact us or call 502-584-1108 to schedule an appointment with one of our experienced divorce and family law attorneys.