It’s easy to consider being married and owning a business in Alaska as an ideal life. Unfortunately, nothing is perfect; you might find yourself in the middle of a divorce and worry about what could happen to your company. These are tips on divorce-proofing your business.
Pay yourself a good salary
It’s wise to pay yourself a good salary from your business to protect it from divorce. Instead of paying yourself five digits, consider six; if your business is successful, this can help prevent having to shell out large amounts of cash to your spouse during a divorce.
Keep finances separate
It’s a mistake to commingle your business and family finances as it can only come back to hurt you during a divorce. Keep all money earned from your company separate from your family funds. This means you should avoid paying for things needed for the business out of your household finances.
Draw a prenuptial or postnuptial agreement
If you’re not already married and own a business you wish to protect from a potential future divorce, a prenuptial agreement can help. It keeps your business and its finances separate so that your spouse cannot get a percentage of its value if you split. A postnuptial agreement works in much the same way, except the document is created after you’re already married to protect you in the event of a divorce.
Put it in a trust
Placing your business in a trust prevents it from being considered a marital asset. This can protect it from a divorce because it means you no longer own it. It’s a solution that can also protect the value of your business’ growth.