When Arizona business owners find themselves in need of a divorce, it can be worrying to consider how it might affect their business, especially if it is their sole source of income. Here are some factors to take into consideration.
Changes to your business
The most obvious change to come to your business after divorce is a financial change. Arizona is a community property state, which means that if your business was formed after your marriage, it may be considered shared property between you and your former spouse. In such cases, your spouse may be entitled to half of it. If you had the business prior to marriage, it may instead be considered solely your own and would not be eligible to split.
Protect the business
There are steps you can take to aid in the protection of your business, however, including:
- Prenup agreements
- Individual financial accounts
- Trust funds for the business
- Insurance on the business
In the middle of a divorce?
If you are already in the middle of a divorce, you can still save your business. Consider selling it or selling stock in the business to avoid a mess. You could also opt to make payments to your ex or strike a deal with other assets to retain complete ownership.
Final thoughts
If you are a business owner, you should be extra vigilant during your divorce. It is important to contact a lawyer to assist in the property division of the business. He or she can help you keep your business safe throughout the divorce process.
