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Steps one can take to protect a business during divorce

| Apr 25, 2019 | High-asset Divorce |

A previous post on this blog talked about how men in Nebraska, for a number of reasons including divorce, may need to get an estimate on the value of their share in a family business or other small enterprise.

Indeed, many Omaha men devote a lot of time and effort to their businesses. Assigning the right dollar value to that business is an important step they can take to protect their investment.

There are other steps a man can take to protect his business in the event of a high-asset divorce or legal separation as well. In fact, some of these steps can even be of benefit to men who are not married or, on the other hand, are happily married and have no plans to divorce.

One way a man can ensure that he will get to hang on to his business upfront is by signing a prenuptial agreement with his future spouse. Provided the agreement complies with Nebraska laws, it can provide that a man will get to keep his interest in the business despite a divorce.

Another means by which a man can protect his business interest that is rather simple is to make sure that, as part of his business planning, he pays himself a salary that is consistent with what he could get performing the same work on the open market. While this could increase his child support obligation, it will prevent the risk that at the time of dividing the business, its value will be unfairly inflated.

A man and his business partners can also have agreements with each other that no one can transfer shares in the business without permission from the other parties. Oftentimes, these agreements also give partners a first option to buy any shares that otherwise would be transferred.

Every man’s needs are different when it comes to protecting his business from divorce and related family law risks, so detailed questions should be directed to an experienced attorney.

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