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Preparing for a divorce as a business owner

On Behalf of | Jun 15, 2020 | Divorce

Business owners who spend years building a successful enterprise may feel it vital to take every possible measure to protect the future of their endeavors. When facing a divorce, concerns over the role a business may play in the process could leave individuals in Arizona in search of guidance on how to prepare for what comes next. Knowing the topics to address and the available options for protecting a business could be vital to entering negotiations with confidence.

When facing a similar scenario, knowing the difference between separate and community assets could prove vital. There are a variety of scenarios in which a business that was started prior to a marriage may retain its separate identity and thus might not be subject to property division. However, even if a business was started prior to marriage, any value that is added to the company after the marriage begins may be deemed community property.

At least a portion of the business may also become community property if company finances are commingled with marital assets in any way. A business that was started before marriage could also become community property if one’s spouse took on company responsibilities or played a role in its success. The presence of a prenuptial agreement or a buy-out arrangement could also have an influence on the outcome of the situation.

It might not be uncommon for business owners who are facing a divorce to have concerns about how the outcome of the situation will affect their interests. Those who wish to obtain insight on the available options to help protect their businesses and what to expect from the process could find it helpful to consult with an attorney early in the process. An attorney can thoroughly evaluate the circumstances a client in Arizona is facing and assist in developing a strategy to pursue the most favorable outcome achievable concerning the future of the company during subsequent legal proceedings.