Going through a divorce in Maryland can be a time-consuming and expensive process. Owning a business can make it even more difficult and take longer to be finalized. As a female entrepreneur, there are a few things that you should know going into divorce.
Your spouse may be entitled to half of your business
Many states will see your business as marital property and split it between you and your spouse during the property division process. This holds true whether or not your spouse was actually involved in any aspect of your business. There are only a few scenarios in which your business will be your own separate property. One of the most common is if you had your spouse sign a prenuptial agreement stating that your business was to be kept as separate property throughout the marriage.
Take a look at your alternatives
Just because your spouse may be entitled to half of your stake in your business doesn’t mean that they will take it. If your spouse hasn’t been involved with the business throughout your marriage, they may not have a desire to hold a stake in it. Rather, you may offer an alternative solution that’s in the best interests of both of you.
For example, say that your business was appraised at $100,000. If this is split right down the middle, that would mean that you and your spouse are entitled to $50,000 stakes each. What you can do is offer your spouse an alternative asset from the marriage that is equal to $50,000. It’s very likely that they will pick to have ownership of another asset that they’ll actually use instead of having a stake in your business.
Going through a divorce can bring up a lot of different questions and challenges. As a female entrepreneur, it’s important to understand what’s likely to happen during a divorce and how you can set yourself up for the best chance of success. It’s always a good idea to contact an attorney to help you throughout the process and answer your questions along the way.