When relations turn hostile during a marriage, the ensuing divorce can be fiercely contentious and competitive. Each spouse wants to walk away with the better end of the bargain, and your business might be right in the middle of this feud.
Kentucky statutes on the disposition of property during a divorce explain that all property you acquire after marriage is marital property. This likely includes some or all of your business, so you need to understand what will happen to the company as a result of your divorce.
What happens to a business during a contentious divorce?
If a prenuptial agreement is in place, and if the terms of that agreement describe the fate of your business, then there is no need to worry about what the outcome may be. However, lacking a prenup may be a source of regret in a high-conflict divorce. Your spouse might not be cooperative in forming a postnuptial agreement if you are on bad terms. You might instead have no choice but to liquidate the business so that the court can distribute those assets equitably.
What can you do to protect your professional future?
The best thing you can do in the absence of a marriage agreement is to seek an accurate business valuation for your company. This appraisal process will give you insight into the true value of your business, which you can use as a negotiation tool as the divorce process continues.
The family business is an important aspect of your livelihood. Knowing what to expect for your business in the wake of the divorce might not make a potentially negative outcome easier to accept, but it can help you prepare and approach your divorce with a stronger stance.