After years spent working and building a business, the Arizona entrepreneur typically wants to do everything possible to make the business thrive. Countless hours and money are often involved in such an endeavor. Yet, all of this hard work can be in vain if the business becomes part of the entrepreneur’s divorce battleground.
Typically, income earned and growth of the business throughout the marriage is considered community property. However, in some cases, one or both individuals may desire to keep the business separate. There are various ways that this can be accomplished.
If one individual is involved in a business prior to the marriage, he or she can address these concerns through a prenuptial agreement. The prenuptial agreement can dictate how business assets will be handled in case of a divorce. However, if the couple is already married and one spouse starts a business, these concerns can be addressed through a postnuptial agreement. The postnuptial agreement is similar to the prenuptial agreement in that it can address how business assets and income will be handled in case of a divorce. The difference, though, is that the postnuptial agreement is an agreement between two individuals who are already married to each other.
Without proper planning, divorce can have a lasting effect on an Arizona business. In addition to affecting the business and its assets, it can impact the livelihood of all those involved — including employees and customers. Experienced legal counsel can assist in structuring the proper agreements to address business concerns if divorce ever becomes an issue.