If you own a business, you have probably put a lot of money and effort into making it something you can be proud of. So if you are preparing for an upcoming divorce, you may recognize that ending your marriage could cause you to lose your business if a judge rules that your business is marital property.
In the event your spouse owns some of the value of your business, you may be in a tricky situation. If you do not have the funds to buy out your spouse, a judge may rule that you must sell your business to produce the value for your spouse.
How to use negotiation
According to Home Business Magazine, negotiating with your spouse offers a possible way for you to hold on to your business. Placing a priority on your assets is an important first step. What do you most want to hold on to? For example, while you may have a claim on one of the family vehicles or ownership of your primary residence, you might place greater personal value on your business.
If so, you could try to arrange a trade with your spouse. In exchange for the value of your business that your spouse owns, you would offer something of equal value that you do not want. If your spouse accepts this arrangement, you can work it out as part of your divorce settlement.
Keep good records
Be certain that you do not have other options which may help you. If you signed a prenuptial agreement with your spouse to clarify that you have sole ownership over your business, you might show a judge that your spouse has no claim over your business at all. Even if your spouse does own a share of your business interest, your financial records may show exactly what your spouse should receive and no more.