Before the wedding, have a solicitor draft a prenuptial agreement that clearly identifies the business as a separate property, so is not involved in the divorce settlement. Prenups must be strictly voluntary and there also must be full disclosure of assets and liabilities, preferably, performed in front of others as witnesses.  

 

 

It is vital to clearly separate your business from your personal expenses. If this doesn’t happen and they get intertwined, it can cause major issues in a divorce. Basically, don’t buy that brand new Mercedes as a “business expense.” A place to start is with two completely different bank accounts that don’t cross at all. 

 

 

Seeking financial advice on the business in terms of marriage and divorce is key as you are able to preempt the worst case scenario and prepare for the worst; this will protect your business. A financial advisor will be able to help you maximise your financial benefits and minimize taxes during a divorce, therefore helping both parties.

 

 

Similarly to earlier, keeping your spouse outside of your business is really important. If your spouse plays a part in the business, they can make the case that they deserve a share of the business and this can develop and cause many more issues. To mitigate this risk, just keep business and pleasure separate. A priority within a divorce is separating your bank account from your spouses. 

Feel it’s Too Late? Look Into Settlement Agreements

 

A settlement agreement is a document created that is used to define how certain terms of the divorce will be allocated and is created in the divorce process. It can be drawn before the divorcing spouse's file for divorce or after. This can be done through settlement agreement solicitors, and when the divorce decree is completed, it will reference the settlement agreement, which makes the settlement legally binding at that point.