Keeping your business out of your divorce

If you get married in California and own a business, taking the steps needed to protect yourself if a high-asset divorce occurs is essential. While you expect the best from your marriage, statistics indicate that it’s prudent to have a plan in place just in case.

Buy-sell agreements

Using a buy-sell agreement can also be beneficial as it can help establish the value of your business at any point in the future when a disability, death or a high-asset divorce occurs. Common valuation methodologies include fixed price, market approach, independent appraisal or formula.

Trusts

Doing all you can to protect your business assets is critical when forming a business. Creating a trust can help if something goes awry.

Taking prudent steps to ensure that you keep your business after completing a high-asset divorce is possible if you approach it wisely. While you’ll likely do all you can to avoid an end to your marriage, it’s best to be prepared.