If you own a business, it's important to ensure you have a plan in place to protect your business and its assets in the event of divorce. One study suggests that as many 60% of U.S. business owners do not have a divorce protection plan in place. Having an established business protection plan is not only a smart financial move for the business owner, but it also protects the employees who depend on the business as their source of income.
Beth Wood, an assistance vice president of the Life Company Marketing division of MassMutual, brings up several good points. She says "If a company is owned by a couple, a divorce can paralyze the business and create divided allegiances among employees and customers. It could also jeopardize a family's wealth and the owners' retirements."
When a business is owned by just one spouse, a divorce can still hurt the business a great deal. Should the business owner's ex-spouse be awarded the business as part of the divorce settlement, changing ownership and decision-making power might cause some employees to question authority. It can also be very distracting for employees as well.
The study, conducted by Massachusetts Mutual Life Insurance Company (MassMutual), found that nearly half of those who responded to the study said their divorce had a negative impact on their business. The study also found that smaller business owners were less likely to have a business protection plan in place than owners of large companies.
Contact a Jacksonville Divorce Lawyer
If you own a business, an experienced Jacksonville divorce attorney at our office can help you create an agreement or document that protects your business and its assets in case you end up getting divorced. This might include filing a prenuptial agreement or postnuptial agreement, establishing a trust, or creating a buy-sell agreement.
To schedule an appointment to learn more about your options, please contact Hutchinson Law today by filling out an online case evaluation or by calling our firm.