Can an LLC protect assets in a divorce?
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Can an LLC protect assets in a divorce?
Forming an LLC or corporation can help protect your business assets in case of divorce, especially if you incorporate before you get married. But it’s important to ensure that you don’t use marital assets to pay for company expenses. If you do, the court could determine that the company is actually marital property.
How do I protect my business in a divorce?
Here are five pre-emptive strategies from attorney Jeffrey Landers that can help protect you from losing your business in a divorce.Sign a prenup. Secure an early postnup. Place the business in a trust. Create a buy-sell agreement. Have insurance.
Who gets the business in a divorce?
Usually one spouse will retain the business. A value will be determined for the business the same way as for a sole trader, ie value to the owner. Similarly, if the business has employees and has been operating for a number of years, it will need to undergo the normal business valuation process.
