What Can You Do To Keep Your Business Safe In Your Divorce?

If you own a Florida business, discussing divorce with your spouse may come with a great deal of anxiety for your company on top of the emotional aspects of the crumbling relationship.  

According to Forbes, there are steps you may be able to take for protection so that the fair division of assets may not result in the death of your business. 

Pay yourself a salary 

If your business provides you with a steady income, this will be a factor in determining what assets a judge may fairly give to your spouse. He or she is not likely to want to deprive you of your source of income. 

Not only should you have a salary, but it should be as close as possible to the going rate for that position in the field. Your spouse could argue for support based on the going rate rather than your actual earnings, and a judge may agree that is fair. 

Keep careful records 

Even if you owned your business before you married, using marital funds to make changes and support your company may lead a judge to determine your spouse deserves a percentage. Keep track of all funds used for the business, including where they came from and what they were used for.  

Careful record-keeping is also critical if your business deals in cash transactions. 

Separate business and personal expenses 

Many business owners run personal expenses through their businesses. However, commingling funds may lead to an inflated income for the purposes of the divorce. 

Specify ownership in organizational documents 

Ensure that your business documents establish you as the sole owner of your company. You may also state in these documents that ownership of your company cannot be transferred during a divorce. Your spouse may instead receive a cash award.  

Other factors may apply that affect whether you are able to keep your business intact through the divorce; therefore, this general information should not be interpreted as legal advice.