When a married couple comes to the difficult decision to end their marriage, they think about the impact on their personal finances, their own relationships and any children involved. However, if one of the parties involved is a business owner, a divorce may also have an impact on their company. Individuals who own businesses in Indiana can take steps to have a plan in place that protects their business in the unfortunate event that their marriage ends in divorce.
There may be a way for a business owner to keep complete control of his or her company if the business was opened before the marriage. However, assets that came into the business after the marriage may be viewed as marital property, which entitles the other partner to a certain amount. Indiana and 40 other states are known as equitable distribution states, which means that a determination regarding marital property will be made by the court.
Prenup and postnup agreements can help with this issue. These contracts allow for some assets to be off limits in the event that a marriage ends and a court becomes involved in distributing them between the partners.
If the business came into existence after the marriage, both parties may be entitled to a certain percentage of ownership. That could result in tense situations in the daily operations of any business as divorces can create a great deal of animosity between former spouses. Often, an agreement can be reached for one party to sell their shares to the other, which resolves this issue.
A business owner who owns his or her own company is encouraged to seek the counsel of an attorney who has experience in divorces where a business may be at stake. The attorney may help guide their client through the process of maintaining control of the company that he or she has worked so hard to establish.