Divorce can be difficult, especially in high-net-worth cases where assets like a successful business are at stake. With a business you poured your heart into building on the line, taking the appropriate steps to protect your enterprise is vital. If you’re currently facing a high-net-worth divorce, you need a dedicated Pensacola Property Division Lawyer to effectively fight for what is rightfully yours. Please continue reading to learn how you can safeguard your business in the event of a divorce.
What is a high-net-worth divorce?
Generally, a high-net-worth divorce involves significant financial holdings. While there is no universally accepted threshold for what qualifies as a high asset, couples with a combined net worth of one million dollars and up are usually considered a part of this category. Ultimately, couples with significant liquid or non-liquid assets, including businesses, professional practices, or residential and commercial real estate, often undergo high-net-worth divorces. However, in today’s economy, it is more accurate to describe this type of divorce as one involving several million dollars worth of assets as a million dollars isn’t what it used to be. High-net-worth divorces can get complicated rather quickly.
Can a martial agreement help safeguard my business during a high-net-worth divorce?
Going through a divorce can be challenging, regardless of how much money is involved, which is why many couples choose to draft prenuptial or postnuptial agreements. These martial contracts can safeguard hard-earned assets if a marriage fails. If you’re a business owner, a divorce can have severe consequences if you don’t take the necessary measures to protect yourself and the business you’ve worked so hard to build and make successful.
It is imperative to remember that marital property, any assets accumulated during a marriage, are subject to equitable distribution during property division. This means marital assets will be divided fairly between a divorcing couple, but not necessarily in an even 50/50 split. If a business were acquired during the marriage, it would be considered marital property and, therefore, be subject to equitable distribution. To keep your business as a separate property, keeping it entirely out of property division, you should consider creating a marital agreement. A prenuptial or postnuptial agreement can help you protect your business by allowing you to dictate the property stake of each spouse in the business.
Furthermore, if you fail to create a martial agreement, other ways exist to protect your business during a high-net-worth divorce. Unfortunately, property owners are usually a contentious issue couples face when divorcing. One way to ensure fair ownership among business owners is by creating ownership share and buyout agreements based on fair value. A business succession plan can clarify requests and promote long-term stability for closely held businesses. Divorce mediation may be your last resort if a formal agreement or business succession plan is not feasible. Divorce mediation can help facilitate open communication during divorce negotiations that can help you reach a mutually beneficial solution while protecting your business’s interests.
If you’re facing a high-net-worth divorce, please don’t hesitate to get in touch with a trusted Pensacola property division lawyer from The Law Office of James M. Burns, who can help you fight to safeguard your business.