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Can you keep your business in a divorce?

Going through a divorce in Michigan is stressful enough, and something most people want to avoid. However, the dissolution of a marriage is often the best route for some people. However, things can become very complicated once a business becomes involved. Understandably, the original business owner is going to become worried about the state of his or her company during and after the divorce.

The 50/50 split

There are a handful of states in the union that require that all marital property is split 50/50. Marital property includes all assets obtained during the marriage, including a business. This means that the court will likely mandate that you split everything down the middle with your spouse during a divorce. You may choose to go this route, but by no means is it the only option you have at your disposal.

Purchasing your spouse’s share

One of the most popular options people use when dividing a business during a divorce is simply buying their spouses’ shares of their companies. Most spouses will likely go along with this buyout as they do not want to communicate with their exes after the divorce. It’s simply seen as a win-win situation in which the owner keeps total control, and the spouse receives monetary compensation.

Prenups/Postnups

If your state has not yet certified your marriage, you may have time to craft a prenuptial agreement. A prenup may be able to protect your company from being split during a divorce. If you have already married, you can still attempt to craft a postnup with an attorney and add the same restrictions as a prenup.

Divorce cases are often very complex and lengthy. That is why it is important to consult with an attorney before and during the case. Doing so may increase the chances that you can keep control of your business.

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