Tips on protecting your business from divorce

On Behalf of | Oct 2, 2023 | Divorce |

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.

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The Law Offices of Herbert M. Pearce

The Law Offices of Herbert M. Pearce
731 I Street Suite 203
Anchorage, AK 99501

Local: 907-276-0113
Toll-Free: 800-579-4214
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Anchorage Office