Running a business in Maryland can be a very lucrative prospect for entrepreneurs. When an owner’s marriage is headed for divorce, however, valuable business assets could be put in jeopardy. These assets, along with income derived from a business, may be considered marital property in a divorce.
It’s wise for entrepreneurs to have some type of contractual agreement in place to keep business relationships and assets separate from the marriage. This is to avoid property division disputes and to ensure that each spouse receives what is legally theirs during the divorce process. A formal contract should clearly state things like percentages of investments from both spouses, roles and responsibilities in running the business. Furthermore, the parties must agree on the terms that will go into effect if the marriage is dissolved or the business relationship ends.
It’s also important to note that business assets, investments and income that come about after a marriage will usually be considered shared property. Assets that are brought into a marriage may or may not qualify as shared depending on the state and unique circumstances. As a result, all business decisions made after tying the knot should be considered carefully as they could have far-reaching monetary consequences if the marriage doesn’t work out in the end.
Due to the complex nature of business dealings and how they have an impact on asset division in a divorce, many business owners partner with property division attorneys for guidance. Legal counsel could help protect business assets and income when unreasonable demands are being made by the opposing spouse. If necessary, the attorney can also offer representation in court.