4 Things Business Owners Need to know About Divorce

You’re 35, you own your own business, and it’s making money. You get to be your own boss and the dream you’ve been working toward since college is finally falling into place.

Then your spouse asks for a divorce. Not only is your personal life changing dramatically, but your business could be in jeopardy. Below are five things you must know to protect it.

1. The best protection is a prenup.

Naturally, if you’re already married and you don’t have a prenup, it’s too late – though you could consider a post-nuptial agreement. Either way, this is the best tactic to protect your business. You simply craft a prenup states that your company doesn’t count as an asset that needs to be divided, but belongs to you alone.

2. You can negotiate with your spouse.

So you don’t have a prenup and your spouse won’t sign a postnup so close to the divorce. There are still things you can do. It pays to negotiate with your spouse. Be civil and work toward an agreement that helps both of you. For example, if you care about keeping your company 100 percent in your hands more than anything else, but your spouse doesn’t know where he or she is going to live, your spouse may be happy to take 100 percent of the home – rather than selling it and splitting the proceeds – in exchange for his or her half of the company.

3. You need a realistic valuation.

One of the keys to using this tactic lies in getting a true valuation of the company. Remember that this may not be the same as the money you put into it. For your purposes, it may also be helpful to have the valuation come in as low as possible. Don’t take it as a slight if you think your company is on the rise and worth $1,000,000 when a financial expert says it’s only worth $400,000. The low price makes it easy for you to buy out your spouse so you can work on getting it to that $1,000,000 goal.

4. Be professional.

Yes, a divorce is personal. But you must remember that dealing with your company brings you back to the professional side of the process. Be honest. Don’t try to hide assets. Don’t refuse to speak to your spouse. Don’t fight over trivial things because you’re feeling so emotional. Try to keep a calm outlook at all times, focusing on your professional future and what you need to do for your company. This mindset puts the company first and helps ensure an agreement you’ll be happy with in five years.

Divorce is hard for anyone, but it’s especially complicated for young business owners. Make sure you know your legal options and what you can do to protect your company and seek an outcome that keeps it intact.

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Alex Rogers

Nathaniel was an incredible partner throughout the divorce process. He was organized, responsive and respectful of my wishes while simultaneously giving me guidance and advice. I would recommend him to anyone.

Christie Cisneros

I couldn’t have made it through my divorce without Clay and his team! I am forever thankful for the hours and time spent with me to help navigate an extremely difficult time in life. They’re reliable, knowledgeable, and know how to get things moving in an efficient manner. Nothing but good to say here!!

Halie Bates

Working with Daniel Young at Brown Family Law was a truly positive experience during one of the most difficult times of my life. From the start, Daniel was knowledgeable, compassionate, and incredibly responsive.
If you need a family law attorney who combines expertise with empathy, I cannot recommend Daniel Young enough. He is a true advocate and a credit to Brown Family Law.

Jessica Lance

Nathaniel and Carren have been absolutely incredible to work with. They kept me informed and in the loop throughout each step of the process. They always answered every question I had in a very quick and timely manner. I could not recommend them more.

Amy Christensen

This 5-star review is for Nathaniel Garrabrandt at Brown Family Law. Nathaniel was just what we needed. He helped guide us with a level of professionalism, efficiency, and genuine care that made a real difference during a challenging time. He is always thoughtful and respectful, and he never makes you feel like just another case. His communication was clear (with regular check-ins), his advice was solid and uncomplicated, and I always felt that he had his client's best interest at heart as he made suggestions. I’m grateful to have had such a capable and compassionate attorney to work with. You hope you never need these kind of services, but when you do, you want the best... and someone with high integrity. Nathaniel truly deserves all 5 of these stars, in every way.

Kenzie Murphy

Russell Yauney was my attorney at Brown Family Law. Throughout the process, Russell and his paralegal Conor, were extremely helpful and patient. They were highly responsive, thorough, and most importantly: did not make me feel insignificant or embarrassed for asking clarifying questions. Russell made himself available and whenever he wasn't, Conor was. The Friday Phone Calls were reliable and I knew I could expect an update each week. The firm's texting abilities also made it easy to send a quick question/concern if I ever needed it. Russell was a fantastic attorney and guide to have throughout my situation. I highly recommend this firm.