It can happen to the best of entrepreneurs. While a new business owner is putting in long hours to build a business, a marriage can fray. The next thing the owner knows, his or her spouse may be filing for divorce. This scenario is all too common. Forty percent to 50 percent of all first marriages in the U.S. end in divorce, according to a 2010 report by the National Marriage Project at the University of Virginia. The divorce rate for second marriages is even higher. For those whose marriage is in trouble or who are about to begin a divorce, a few strategies can help preserve a business. Once the divorce proceedings start, entrepreneurs won’t likely be able to implement some other legal maneuvers that, if accomplished in happier times, could keep their business from landing in a soon-to-be ex’s possession. Businesses Can Be Destroyed By DivorceIf you’re not careful in a divorce, you could find your ex is your business partner — or you could be fighting to keep your enterprise from being sold to raise cash. Or you might lose the business to your ex. That’s what happened to Tereson Dupuy, founder of FuzziBunz, an online cloth-diaper business based in Lafayette, La. Dupuy launched the company three years into her marriage after seeking better diapering options for her second child. But in 2005, close to the couple’s 10-year anniversary, the marriage unraveled. Dupuy discovered FuzziBunz would be considered a joint marital asset. Louisiana is one of a handful “community property” states, including California, which assume each divorcing spouse owns half the property accumulated during the marriage. Dupuy says the stress of the divorce drove her into a nervous collapse and within 24 hours a judge put her husband in control of the company. It took Dupuy a year and a large lump-sum payment to her ex — plus $15,000-a-month payments to her ex over many years — to regain ownership. The payments drained cash, and bankers considered her need to pay them outstanding debt, making it hard for her to borrow needed growth capital. Is your marriage headed toward a divorce?Here are seven strategies to consider if a divorce is threatened or already underway and your company is considered a joint asset.
One bright spot for entrepreneurs: It’s rare that a business ends up being sold off to satisfy a divorce settlement, Clement reports. That’s because it would deprive the business owner of the future income needed to pay support payments. Preventive Moves To Protect Your Business in DivorceTake action while your relationship is still rosy and you may greatly increase your odds of surviving a divorce with your business intact.
Here are five pre-emptive strategies that can help protect you from losing your business in a divorce.
Free Consultation with a Divorce Lawyer in Utah that Can Protect Your BusinessIf you have a question about divorce law and how to protect your business in a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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Filing For Divorce While Living Abroad Attorneys in Salt Lake City Utah Help a Loved One Make a Power of Attorney via Michael Anderson http://www.ascentlawfirm.com/how-to-divorce-proof-your-business/
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