Preparing to dissolve a marriage may rarely be easy, and the outcome of such a process could affect your life in various ways. While such a process can be complex under any situation, if you own and operate a business, there may be additional factors at play that may only act to further complicate matters.
While addressing the idea of dividing business assets in a divorce can be stressful, it can also be vital to preparing to protect your interests. There may be numerous essential factors to consider regarding business assets in divorce, and knowing your rights and options could be vital to making informed choices about your future.
Examples of factors
A business is a type of complex asset that could be a point of contention during a divorce. A few types of factors that might influence the role your business will play in this process could include:
- Separate property: One of the first topics to address may involve determining whether the business is marital or separate property, as this may affect whether it will be subject to the property division process.
- Date of formation: If you start the business before entering your marriage and take steps to avoid comingling assets with marital funds, it may retain its separate identity during divorce proceedings.
- Increases in value: Even if the business is separate property, if its value increases during your marriage, your soon-to-be former spouse may have a right to a portion of this increase.
- Spousal contribution: Another factor to address could involve whether the other party took on a position in the business or performed other contributions that played a role in its success.
It may also be vital to address factors such as whether your soon-to-be ex-spouse supported your career and stayed at home to care for your children, as this could influence the outcome of your situation.
Addressing your situation
There are various types of factors that could influence the role your business might play during the end of your marriage. Seeking advice on what to expect from this process could help you better understand your available options and help place you in a position to make informed decisions about your situation. This could play a vital role in helping you create a strategy for subsequent divorce proceedings that best aligns with the interests of your company and your goals for your future in Kentucky.