The most effective way to protect your business from divorce is to designate it as separate property in a prenuptial agreement. A well-written prenup will ensure that your business remains separate property no matter how much your spouse contributes.

What happens to a corporation in a divorce?

Any corporation, whether marital or nonmarital, will have to be valued in order for the parties to make an informed decision about the division of either that asset, or their other assets. So, even if a spouse does not have an interest in the corporation, it will still impact divorce proceedings.

Can a business be developed during a marriage?

Brette’s Answer: Yes, a business that is developed during the marriage is definitely a marital asset and its value must be added into the total pot of assets to be divided. You probably aren’t entitled to physically own part of the business, but you are entitled to own a portion of its value.

What did my husband do with his business?

He never paid anything to purchase it and the company makes less money than it did before he started. He put no effort into the business other than showing up for work and servicing the accounts as any employee would have. He did nothing to act as a partner in the business at all.

Do you own a part of your business?

You probably aren’t entitled to physically own part of the business, but you are entitled to own a portion of its value. For example, if the business is worth $50k, that goes into the pot of marital assets. If you have other assets worth $200k, then the total marital assets are $250k.

When did I become owner of my own business?

This was a family owned business for 14 years before I became owner of it (3 years before I married my husband). He ended up becoming a driver with the company the year after I took over. He never received a paycheck, we just paid bills etc.