If You’re a Business Owner, You Don’t Want to Make These Mistakes in Divorce

At The Bellinger Law Office, we understand that divorce is not an easy process. It becomes even more complex when a business is involved. As a business owner, you face unique challenges during divorce proceedings, and the stakes are high. We have seen it all, and we are here to help guide you through this difficult time.

When one or both spouses are business owners, untangling debts and assets can be a daunting task. Unfortunately, we’ve seen many business owners make critical mistakes during their divorce proceedings. Here are some of the most common pitfalls and our advice on how to avoid them.

Assuming a Divorce Won’t Happen

Many business owners never consider the possibility of divorce, but ignoring this potential circumstance can have devastating consequences. It’s essential to plan for every eventuality, including divorce. An ounce of prevention is worth a pound of cure, as they say. A prenuptial agreement can protect your business by designating it as separate property and including provisions for valuation and buyouts.

Commingling Personal and Business Funds

Mixing personal and business finances is a common mistake that can lead to complications during a divorce. This practice makes valuing a business challenging and can result in flawed property settlements. To avoid this issue, maintain separate accounts for personal and business expenses.

Improperly Valuing the Business

A comprehensive business valuation is crucial for a fair property division settlement. However, many business owners underestimate their business’s value, leading to an unfair division of assets. Remember to consider future growth and potential when valuing your business.

Failing to Take a Consistent Salary

Paying yourself a consistent salary from your business is vital to prevent artificially inflating its value. If you fail to do this, you could face financial consequences during the divorce proceedings. 

Rushing the Process

Divorce is a significant life event, and it’s essential to take your time. Many business owners rush through the process, eager to move forward. However, this haste can lead to unfavorable settlements. Take your time, review all documents carefully, and consult with your attorney before making any agreements.

Get Legal Support

Navigating a divorce as a business owner is complex, but you don’t have to go through it alone. At The Bellinger Law Office, we are committed to providing the best possible service to our clients. We listen carefully, manage your case efficiently, and protect your rights throughout the process. 

Behind every divorce case, there are real people with real struggles. You are not just another client to us. We understand that you need sound legal help and advice, and we are here to be your voice throughout the ongoing legal process.

Contact Us

If you’re a business owner going through a divorce, don’t hesitate to reach out to us at The Bellinger Law Office. We will fight for you, ensuring your business and personal interests are protected.