Going through a divorce can be devastating both psychologically and financially. The months and years you and your spouse spent building a life together now needs to get separated back into two.
In addition to your bank accounts and other assets, you may find that your business is on the chopping block as well. It is essential to protect your business since that is how you can continue to sustain your life and livelihood.
Here’s what you should know about protecting your business as you go through your divorce.
Clear records help
When you want to hold onto your business through and after your divorce, your business records will tell an important story. If you funded your business with money that clearly belonged to you and the business, you will have an easier time making the case that it should remain in your name.
Keep in mind, if there is personal or joint money regularly going through the business, it will be challenging to make the claim that you are the sole owner of the company.
Paperwork matters
You may not have thought much about your business formation since you started your business. Still, now that you are going through a divorce, it could be significant in a way you did not expect.
Paperwork that establishes you as the business’s sole owner can help you show that the business belongs to you as an individual, not you and your spouse as a couple.
Protecting your company through a divorce is a challenge. It is critical to talk to an experienced professional to help you protect your business.