The divorce process in Indiana generally involves a lot of negotiation, especially when it comes time to divide assets. Negotiations about finances can often become tense, and even more so when one of those assets is a business.
Possible effects of divorce
Most divorces affect the way the parties relate to each other. However, there are some unique challenges when there are business owners involved. For example, the divorce proceedings could distract the business owner from the company. This can make things awkward for those who also work there. If both partners are involved in the business, the situation will only be tenser.
Keep in mind that the business can be affected by the divorce settlement. For example, an ex-spouse may be awarded a portion of the business, either allowing them to become more involved or increasing the part of their ownership. In some cases, one of the parties might sell part or all of their stocks in the business or decide to sell the whole business and split the profit.
Options for business assets during divorce
There are several options business owners might consider when it comes to their assets and divorce. These include:
- Drawing up a prenup or postnup to protect their interests if the business existed before the marriage
- Negotiating with their ex to trade some other assets for full ownership of the business when dividing assets
- Creating a payment plan that allows one party to keep the business while making payments to the other party gradually
The property division process often requires both parties to make sacrifices. If you’re going through a divorce, consider consulting with a family law attorney who can help seek a fair, equitable settlement.