Hyland Law Firm, LLC
Why You Should Divorce-Proof Your Kansas Business
On behalf of Hyland Law Firm, LLC posted in Kansas City business law attorney on Wednesday, December 4, 2013.
As a small business owner, you have likely spent countless hours building and growing your business. With all this time invested in your business, stop and think what you would do if your business suddenly vanished right before your eyes. This scary scenario could easily become a reality if you have not carefully divorce-proofed your business. Whether you are happily single or blissfully married, there are things you can do now to shield your business in the event of a divorce. If you do not think that divorce proofing your business is necessary, think again. Here are just a few of the reasons why any business owner should strongly consider taking steps to divorce-proof his or her business:
- Divorce is real: Before you start thinking that divorce only happens to other people and could not possibly happen to you, it is important to take a close look at the facts. It is estimated that close to fifty percent of all marriages end in divorce. This statistic can be further broken down depending on the number of the marriage. With second marriages have a failure rate at or above sixty percent and third marriages having failure rates near seventy percent, divorce is all too real a possibility for any marriage.
- It is easier to divorce-proof before a marriage than after: If you are a happy and content bachelor or bachelorette it may sound a little crazy to think of divorce-proofing your business. However, often the time between a first date and wedding bells is short, leaving little time to make adequate preparations. Also a few of the best divorce-proofing options disappear after a business owner says "I do."
- Nobody wants an "ex" for a business partner: Whether or not your spouse is involved in the day-to-day operations of the business, in most instances you do not want to run your business with your spouse post divorce. Adequate divorce proofing can help ensure that this do not happen.
- Divorce can rob you of your business: In a divorce, one of the roles of the divorce court is to divide a couple's assets between the parties. How this division occurs depends on the laws of that state. Community property states, like California and Wisconsin divide all assets 50/50. States like Kansas, Illinois and Texas are considered equitable distribution states where personal property is divided equitably rather than equally. After reviewing the relevant facts, a Judge could divide a couple's assets 50/50 but could also divide them 80/20 if the facts support such a division. Could your business survive if you had to pay out your spouse between twenty and eighty percent of the value of your business?
- Divorce can force you to make "bad" business decisions: A divorce can also affect the how a business is run. A business owner that is struggling with the stresses and demands of a divorce could be potentially removed as the head of the company or forced to make decisions he or she would not make but for the divorce. Proper planning can avoid such things from happening.
- A business is most often a marriage's biggest asset: Much like a helpless infant that grows and matures into an adult most businesses start small and grow little by little over time. Do not make the mistake of thinking that your $50,000 business is not "worthy" of divorce proofing. That $50,000 business after twenty years of marriage could be worth ten times more.
If you have questions about how you can divorce-proof your Kansas business, contact the Hyland Law Firm, LLC to schedule a free consultation. Seasoned business litigation attorney, Charles Hyland, understands how a divorce can potentially wreak havoc on a small business. Do not wait until trouble strikes-call today to schedule your completely confidential initial consultation. The Hyland Law Firm has the knowledge and experience to protect your business.