[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/nmichlaw.com\/blog\/is-it-too-late-to-protect-my-business-in-divorce\/#BlogPosting","mainEntityOfPage":"https:\/\/nmichlaw.com\/blog\/is-it-too-late-to-protect-my-business-in-divorce\/","headline":"Is It Too Late to Protect My Business in Divorce?","name":"Is It Too Late to Protect My Business in Divorce?","description":"When your spouse serves you with divorce papers, you may worry about how your impending divorce will affect your small business or partnership interests. You might also wonder whether you have waited too long to protect your business assets by … Continue reading →<\/span><\/a>","datePublished":"2024-11-05","dateModified":"2024-11-05","author":{"@type":"Person","@id":"https:\/\/nmichlaw.com\/blog\/author\/nmichlaw\/#Person","name":"Alward Fisher","url":"https:\/\/nmichlaw.com\/blog\/author\/nmichlaw\/","identifier":10,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/63071aa228c966abd886a2cbb647b07806c39706d3fbac14fe9c4c475edc7457?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/63071aa228c966abd886a2cbb647b07806c39706d3fbac14fe9c4c475edc7457?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Alward Fisher","logo":{"@type":"ImageObject","@id":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/09\/logo-fisher.png","url":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2021\/09\/logo-fisher.png","width":288,"height":103}},"image":{"@type":"ImageObject","@id":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2017\/10\/Vijendras-Client-Thumbnails-4.png","url":"https:\/\/nmichlaw.com\/wp-content\/uploads\/2017\/10\/Vijendras-Client-Thumbnails-4.png","height":720,"width":1280},"url":"https:\/\/nmichlaw.com\/blog\/is-it-too-late-to-protect-my-business-in-divorce\/","about":["Divorce"],"wordCount":667,"articleBody":"When your spouse serves you with divorce papers, you may worry about how your impending divorce will affect your small business or partnership interests. You might also wonder whether you have waited too long to protect your business assets by not taking steps to secure your interests before divorce proceedings begin. In these circumstances, you need knowledgeable legal counsel to help you understand your options for protecting your business interests during your divorce.Understanding Business Assets in DivorceMichigan divorce law treats business assets like any other assets, such as a home or vehicle. Any business interest or portion of an interest that qualifies as marital property becomes subject to equitable division in divorce. As a result, your soon-to-be-ex-spouse may have a legal right to a portion of your business ownership interests. Whether a business interest qualifies as a marital asset depends on various factors, including:Whether you started the business or acquired your interest before or during your marriageWhere you obtained the capital to start the business or acquire your interestWhether you\u2019ve used marital property as collateral for the business\u2019s debtsThe entity and taxation structure for the business, including whether you receive a regular salary or withdraw profits from the business for your incomeThe growth in the value of the business during your marriageWhether your spouse participated in the operation of the businessFactors Influencing Business DivisionCourts will consider various factors when deciding whether to divide a spouse\u2019s business ownership interests in divorce, including:Whether the spouses already co-own the business or both hold ownership interests, and whether either spouse has expressed an interest in buying out the other spouseThe feasibility of dividing a spouse\u2019s ownership interest, including whether the business\u2019s governance documents prohibit or restrict transfers of ownership interestsThe determination of the business valuation in divorce proceedingsWhether the marital estate has other assets that may offset the business interest during equitable divisionCan You Still Protect Your Business if Divorce Proceedings Have Started?Although proactive planning can best protect your business interests, you still have options available to you once divorce proceedings have started. Depending on your personal and family finances, you may resolve the equitable division of a business interest by agreeing to give your spouse other marital assets of equal value to their interest in your business. Alternatively, you might agree to buy out your spouse if they own a share of the business.Assessing the Current SituationAs you weigh your legal options for protecting business interests in divorce, you should also get a business valuation to understand the value of the share of your interests your spouse might receive in divorce. A valuation can help determine whether you can compensate your spouse with other assets or buy your spouse out of the business.Protective Measures to ConsiderHere are some proactive measures you can take to protect your business interests in the event of a divorce:Signing pre\/postnuptial agreements that settle the question of equitable division or leave business interests out of the divisionIncluding provisions in your business\u2019s governance documents to restrict transfers of interestsMaintain clear financial separation between your business and your personal\/family financesContact Our Michigan Divorce Attorneys to Learn MoreWorried about how your upcoming divorce will affect your business? Contact Alward Fisher today for a confidential consultation with an experienced Michigan divorce lawyer to learn how we can help you safeguard what you\u2019ve worked so hard to build.About the AuthorLatest PostsAlward FisherAt Alward Fisher, we provide more than savvy legal representation. We provide peace of mind. Peace of mind for your business. Peace of mind for your family. And the peace of mind for your future. No matter what types of legal challenges you are facing, we can help you find solutions.Can Someone with the Power of Attorney Change a Will?Can a Divorce Be Denied in Michigan?What Is the Downside of Collaborative Divorce?"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/nmichlaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Is It Too Late to Protect My Business in Divorce?","item":"https:\/\/nmichlaw.com\/blog\/is-it-too-late-to-protect-my-business-in-divorce\/#breadcrumbitem"}]}]