A divorce can have a significant impact on your Alabama business. In some cases, you may lose some or all of your ownership stake in the company, and there is a chance that the divorce process will take your focus away from running your organization. However, there are ways that you can minimize the impact that the end of a marriage has on your company.
Transfer ownership of the company to a trust
Putting your company in a trust means that you are no longer its owner. Therefore, it may not be subject to the property division process in the state where the divorce is taking place. It is important to note that this transfer needs to take place before divorce proceedings begin. Otherwise, it may be seen as invalid and nullified by a judge.
Offer other assets in lieu of the business
Your spouse may be willing to forfeit his or her portion of your organization in exchange for other assets. For instance, you may give your spouse 100% of a bank or brokerage account for the right to remain sole owner of your company.
Installment payments may be an option
It may be possible to pay a settlement over time so that you don’t need to sell some or all of your business. Alternatively, an insurance policy may cover the cost of buying out your spouse without the need to liquidate corporate assets.
In a divorce, joint property is generally allocated based on who may have the greater need for it. However, it may also be allocated based on the terms of a prenuptial agreement or other custom agreement that you and your spouse create. A legal professional may be able to help you obtain a favorable settlement.