Is my business marital property if I started it after separating?
Naturally, nobody really desires a divorce due to the difficulties that has attached to it. Many people tend to enter a divorce in a hurry without thinking about the consequences that follow after the divorce. When you are thinking about your life after the divorce, you are possibly just thinking about how to start a new life without your spouse and certainly not the consequences of the divorce. One of the things you ought to really consider is divorce property, including your business; it is what you might regret later on.
When people get married, they constantly anticipate for a happy married life, but the heartbreaking truth is that over 60% marriages end in divorce. Though the difficulties attach to a divorce can be very intense when a business or venture is included. Your business is almost certainly the most important financial asset you possess. You have put your best, spend time, and put all your resources into the business for it to grow. But you did not know that you might be unsuspectingly doing things that might put your business at threat in the event of a future divorce.
Depending on your individual situation, your spouse may be given 50% of your business in a divorce. Since it is perhaps secured to presume that you will not like your ex-spouse to be a part of your life as a business associate. Well, there are different ways to determine if your business is a marital property and one of it, is the utilization of prenuptial agreement.
The agreement involving two people who are about to get wedded that explain exactly how possessions will be shared/distributed in case of death or divorce is called a prenuptial agreement. This kind of agreements has been existed for hundreds and thousands of years in different forms.
A prenuptial agreement is also a good way to protect a business owns by a spouse before or after marriage in the case of a divorce. In Maryland, where equitable distribution is practiced, a business integrated prior to the marriage is considered to be a separate property, but any enlargement in the business after the marriage is a marital property. If the couple divorce, determining how much of the current business is matrimonial and how much is separate would be complicated at best. If the spouse who originally in custody of the venture want to uphold ownership, there might not be enough other marital assets to counterbalance its worth. In that case, both spouses would have to remain as business associates (co-owners), or you can get a buyer for the other spouse share or close the business. A prenuptial agreement that is very strong can keep away from the cost, distress and time of dealing with such situation.
Not everyone would consider prenuptial agreement, but if you find yourself in any of the categories listed below then you can go for it.
- You own a part or all of a business
- You may possibly see a huge boost in income because your business is taking off.
- You have property such as a house, stock or other investment.
- You might be receiving a birthright property
- One of you is much richer than the other
- One of you will be helping the other in the course of college
- You have or you are going for a degree or certificate in a credible lucrative career such as medicine