Divorce can be especially difficult on business owners
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Divorce can be especially difficult on business owners

| Oct 22, 2020 | Uncategorized |

When people in North Carolina get divorced, there are many different issues that they need to take into consideration. The dissolution of a marriage means that several issues need to be agreed upon, including child custody, the division of financial assets and the selling of any assets that can’t be split.

One area that can be a bit problematic is when there is a business involved. How that business will be split up will be determined by what types of protections, if any, were set up before the marriage.

There are many things that people do to make sure that their businesses are protected in case they get divorced. One solution is to draw up a prenuptial or postnuptial agreement. These agreements will help determine what will happen to a business if a couple decides to dissolve the marriage. A prenuptial agreement is ideal, but if a postnuptial agreement must be set up, it should be done as soon after the marriage as possible.

Another way to protect business assets is to keep financial assets separate. If people use personal assets in their businesses, any business profits could become marital property.

Another way that people protect their businesses is by putting them into a trust. Once a business is part of a trust, the spouse who is part of the business will no longer own the business. This will help prevent the business from being included in any type of future settlement.

Another solution would be to take out a whole life insurance policy. This policy could be activated if divorce settlement costs exceed the available cash a divorcing spouse has on hand.

People looking for help with their divorce may benefit by working with lawyers who specialize in this type of law. Divorce attorneys have experience working with complicated marital splits.

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