When you’re going through a divorce, you want to protect your business interests. You also want to ensure that your personal assets are protected. Divorce can be an emotional time, and it’s easy to let the stress of the situation get in the way of making the right decisions. The best way to avoid making mistakes during this stressful time is by getting advice from experts who understand both sides of the situation—such as your lawyer and accountant—before deciding to divide property or share assets with your spouse during separation or divorce proceedings.
Failing to Separate Business and Personal Assets
Business owners must separate their business and personal assets to avoid divorce mistakes. This is easy to do if you’ve never mixed the two in the first place. However, if your company has been in operation for years, but you are now going through a divorce and need to split up investments that were made jointly with an estranged spouse, it can be more difficult to untangle your finances.
In this instance, we highly recommend hiring an attorney who specializes in family law matters and knows how to navigate complicated asset division cases when one spouse is a business owner or entrepreneur—especially if they have no intention of selling off any part of the company they started together.
Thinking You Can Go It Alone
Divorce is a challenging time, and you need someone to help you ensure you’re getting the best outcome. This doesn’t just mean an attorney who can guide you through the paperwork; it also means someone who will be there for emotional support and help with financial aspects such as assets and debts.
Avoiding a Pre-Nup or Post-Nup Agreement
If you’re a business owner entering into a marriage or partnership with someone who owns their own business, it is critical to protect your interests. While this may seem obvious, many people don’t realize that they need to protect themselves in the event of divorce. A pre-nuptial agreement (also known as a pre-nup) can help ensure your assets are protected and each party is treated fairly by the courts if the relationship ends in divorce.
Not Seeking the Right Advice
It’s easy to become overwhelmed by the tasks of a divorce, and you may not feel like you have the time or energy to take on additional responsibilities. However, if you want to keep your business thriving and find yourself on stable ground in the future, you must make sure all of your bases are covered. If a spouse is planning to sign over one-half of their ownership interest in a family business and/or assets related to that business, then he or she also needs an attorney. If there are children involved with whom both parents would like equal time-sharing rights (50/50), then both parties need separate advisors who can help them make sure they’re being equitable with their parenting plans.
Not Paying Attention to the Tax Consequences
The tax consequences of a divorce can be significant, but they’re often misunderstood. The complexity of taxes is exacerbated by the fact that the rules vary depending on the type of divorce. If you want to avoid paying unnecessary fees and fines, talk to a tax professional about how your divorce will affect your taxes before making any important financial decisions. You might even need to hire a tax professional yourself to help you with your taxes.
Divorce can be financially devastating. It’s important to speak with an attorney who has experience in such family law matters.
Mestayer & Associates provides civil litigation for clients throughout the Gulf Coast area, including Pascagoula, Biloxi, and Gulfport. If your spouse has asked for a divorce or filed for one, then contact us today and let us guide you on the next steps. Call us today at 228-762-1193 or visit www.pascagoulalaw.com We are your legal experts! You can also visit our office located at 2128 Ingalls Ave. in Pascagoula, Mississippi. We look forward to talking with you!
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This article does not create an attorney-client relationship. I am licensed to practice law in Mississippi and have based the information presented on US laws. This article is legal information and is for entertainment and informational purposes only and should not be seen as legal advice. You should consult with an attorney before you rely on this information. Any information provided in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors or mistakes.