Going through a divorce can be challenging, especially if you own and operate a business. You do not want a marital separation to harm your company. There are steps that you can take ahead of time and early on in the divorce process to put yourself and your business in the best position for the future. Here, our Mankato divorce lawyers highlight five tips that Minnesota entrepreneurs can use to help protect their business from a divorce.
1. Consider a Prenuptial Agreement or Postnuptial Agreement
Minnesota is an equitable distribution state. A divorcing couple’s marital property will be split up in a manner deemed fair and appropriate. A business could be considered marital property in Minnesota. In other words, the value of a business may be an issue when dividing property. You may want to consider protecting your company with a professionally drafted prenup or postnup.
2. Separate Personal Finances from Your Business
A divorce does not have to cause problems for a business. If there is a clear separation between your personal finances and your business finances, you will be in a far better position to keep your company out of the divorce. To the maximum extent possible, try to separate funds.
3. Keep Careful, Comprehensive Records
Another key step to take to protect a business when going through a divorce in Southern Minnesota is to keep careful, comprehensive records. When there are sloppy records, the non-business owner spouse may have an opportunity to make a claim against the company itself. Well-prepared business records can help you and your company navigate the divorce process as smoothly as possible.
4. Try to Keep Your Business Out of a Contested Divorce Dispute
No one wants to get locked up in a difficult divorce dispute. Avoiding litigation can be especially beneficial if you are a business owner. While every case is different, business owners should try to consider all of their options for reaching an agreement (settlement) with their partner. Alternative dispute resolution (ADR) may help. As explained by the Minnesota Judicial Branch, mediation is an often effective form of ADR in divorce cases.
5. Seek Professional Legal Representation
Divorce is complicated. You do not need to go through the legal process all alone. The sooner you consult with an experienced Mankato, MN divorce lawyer, the better position you will be in to find a solution that limits conflict, spares relationships, protects your personal financial interests, and protects your business. A lawyer can review the specific circumstances of your case and help you determine the best course of action.
Contact Our Mankato, MN Family Law Attorney Today
At Kohlmeyer Hagen, Law Office Chtd., our Mankato family law attorneys have the skills and experience to effectively represent business owners in divorce. If you have any questions about protecting your company from a divorce, we are here as a resource. Contact us today for a fully confidential initial consultation. With offices in Mankato and Rochester, our firm provides divorce representation to business professionals throughout all of Southern Minnesota.