California is one of a few states where the community property method of distributing assets is used during a divorce. While this may work for some couples, it can be an unfair split for others, as it splits marital property evenly during the dissolution of marriage. This means your spouse can be entitled to half of any funds, properties, or companies obtained or created during your union. Keep reading to learn what you can do to protect your business and how Los Angeles high net worth divorce attorneys can help.
What Documents Can Protect Your Business?
When you get married, there are certain documents that can protect your business in the event that you and your spouse decide to divorce. One of the most essential tools is a post-nuptial agreement. Similar to a prenup, this document is signed after a couple is married and details how the assets will be split should they divorce.
You can also place your business in a trust, which helps prevent it from becoming marital property. This is because the business is technically controlled by a separate entity. Similarly, forming a business entity, like an LLC, holds the company separate from the owner, as it assumes its own legal identity.
Regardless of what documents you choose to protect your business, it is essential that you do not use marital assets to pay for your company’s expenses. Doing so will make it much harder to protect, as it can be considered marital property because you used your shared assets to fund your business.
Are There Other Options?
If you didn’t set these documents up, there are other steps you can take to help protect your business during a high net-worth divorce. One of the most crucial measures you should take is to keep your spouse out of your company. This includes hiring them as an employee or allowing them to help manage your company. If they are involved, it could likely be considered marital property.
You should also be ready to negotiate other assets. If you want to guarantee that you retain complete control of your business, you’ll need to prepare to relinquish other property to make the distribution of property even.
Can a Lawyer Help?
If you’re going through a divorce and your business is involved, ensuring you have a competent attorney well-versed in high net-worth divorce cases is crucial. They can help protect your assets in order to help you achieve the best outcome for your circumstances with as little disruption to your business operations as possible.
The Zitser Family Law Group can help represent you during highly contested divorce cases. Reach out to one of our competent attorneys today to discuss the details of your case. We will fight to ensure that your assets are split fairly, doing what we can to protect your business during a high net-worth divorce.