Law Offices of Karen Cushman, P.C. A Family, Divorce & Estate Planning Law Firm
Free 20 Minute Consultation

Can I protect my business in case of a divorce?

Last week, we discussed how Chris Rock has filed for a divorce from his wife of almost two decades. Now, Rock and his wife will have to deal with splitting assets and handling child custody issues. That post might have some of our Texas readers wondering what they can do to keep their business assets protected during a divorce.

Should I pay myself a salary?

You should pay yourself a good salary when you own a business. This will help you protect your business in the long run because you can contribute to the family's finances without making the family live on a bare bones budget as you grow the business. In the event of a divorce, your spouse might be able to claim a good portion of the company based on lack of support for the family while you were working.

Should my spouse work for the company?

That is a slippery slope. There is a chance that if your spouse has a prominent spot in the company, he or she could say that the success of the company was due at least in part to his or her contribution. In that case, your spouse might say that he or she is due some of the profits from the company's growth.

Are records important?

Keeping financial records is very important. You should keep all finances separate. Ensure you keep good records of the finances for the company and the finances for the business.

Other ways you can keep your business protected are to get a prenuptial agreement or a postnuptial agreement signed. You might also be able to put the business in a trust to help keep it protected. Working with someone familiar with divorce and business assets might help you to determine what steps to take to keep your company protected.

Source: Entrepreneur, "How to Divorce-Proof Your Company" Carol Tice, Jan. 05, 2015

No Comments

Leave a comment
Comment Information

Get Started With A Free Consultation

Our office provides a free 20-minute consultation to discuss your situation. Please call us at 888-654-3558 or you may also send us an e-mail. We accept Visa, MasterCard and American Express.

Contact Us Today

Use the Form Below or Call 817-789-4953

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location

Law Offices of Karen Cushman, P.C.
2408 Garden Park Court, Suite A
Arlington, TX 76013

Toll Free: 888-654-3558
Phone: 817-789-4953
Arlington Law Office Map