A divorce can have a significant impact on your Wisconsin business. However, there are various strategies that may be implemented to ensure that you don’t lose control of your company. For example, you could create a prenuptial agreement that states that your firm is treated as separate property if the marriage comes to an end. It may also be possible to put a company into a trust to minimize the risk that it is taken by your spouse as part of a divorce settlement.
The advantages of a prenuptial agreement for your firm
Employees, investors and vendors may feel better about associating with your company if they know that it will survive the end of your marriage. If your company is publicly traded, its share price will likely experience less volatility if investors know that it will continue to be led by a competent individual.
What to know about putting your company in a trust
Typically, you will place your firm’s assets inside of a revocable trust to ensure that you retain control of them. It’s important that it is established before you have reason to believe that your marriage will come to an end. Otherwise, your spouse may claim that you took this step in an effort to deny that person his or her fair share of what will likely be seen as a marital asset.
You can trade the business for other assets
Your spouse may be willing to let you retain 100% ownership of your company in exchange for the rights to other joint assets such as a home or bank account. An attorney can describe the property division process and how it might impact your organization’s future.