Prior to marriage, throughout their union and even through dissolution, couples in Ohio often argue about finances. This is especially true if spouses own a business together. Separating business assets in a divorce could become a very messy and complicated process. Even if they are able to eventually come to terms on the vast majority of their marital property, business assets are left argued over and could prolong the complex divorce situation.
When a married couple mixes business with pleasure, they will often endure heartache and financial woes, if a divorce occurs. Sorting through business finances in a divorce is challenging and rather complex when an individual’s business partner is their soon-to-be ex-spouse.
The emotions and disputes involved in dissolution could easily affect business practices and the distribution process. In these matters, couples could have avoided such complex and damaging situations by including a prenuptial agreement in their marriage. Even if the couple acquired the business during their union, they could draft a postnuptial agreement, which could provide the same safeguards.
A prenuptial agreement could essential help the couple plan for a divorce, so they do not need to determine what will happen to the business if a divorce were to occur. Moreover, it is much easier to be rational and compromising, if they make these decisions prior to any signs of a divorce. This could help ensure an equitable distribution.
The divorce process is a very complex and life changing event for some. When marital property and assets and significant, it can become a lengthy and emotional process. For those struggling to reach a divorce agreement, they should seek guidance about what steps they can take to better the situation while also protecting their rights.
Source: CNN Money, “Double trouble: When spouses who share a business call it quits,” Brandon Southward, April 9, 2014