Can your spouse seize your business assets during a divorce?
When you file for divorce in Pennsylvania, you may be in for a lengthy court battle. Pennsylvania is an equitable distribution state, meaning that a judge ultimately decides how your property will be divided. In some ways, this can be positive as it means that you do not have to evenly divide every piece of property you own. But it can also result in a long and costly property division process.
How can you protect your business during a divorce?
If your business was formed during the marriage, it will likely be considered marital property during the divorce. This means that your business assets may be divided in court. However, there are ways you can prevent your former spouse from seizing parts of your business.
During the property division process, you can offer your spouse another asset in exchange for letting you keep full control of the company. This asset could be a house, a car or anything else with which your former spouse agrees. If you do not have a lot of cash on hand, you could also agree to make payments to your former spouse over time. It can be expensive, but it is better than handing over your business interests.
Can an attorney help you protect your business?
An attorney may help you protect your business during the divorce proceedings. A lawyer may assist you in negotiating with your spouse and offering another asset in exchange for the company.
If your former spouse insists on taking a share of the business, an attorney may help you figure out the best course of action to take. This may mean selling your shares in the business and buying them back later or simply dissolving the company entirely. You may also be able to protect your business if you signed a legally binding prenuptial agreement.