Most Connecticut entrepreneurs take care to review the legal and business decisions they need to make when starting a new business. They may even consult with an attorney regarding the formation and planning involved. However, they may not consider how family law could affect the future — and potential success — of any new venture.
An engaged or married Connecticut resident who is starting a business or already owns one may benefit from some family law advice regarding the business. Otherwise, it could end up on the chopping block in a divorce. Prior to marriage, a prenuptial agreement could be signed that ensures that the business remains a separate asset of the owner. After marriage, a postnuptial agreement could be signed that does the same thing.
It will also be necessary to make sure that the company’s finances do not end up mixed in with the family’s finances. In addition, if the business owner intends to keep it separate, involving the other spouse may not be a good idea. The farther away the other spouse is from the business, both through actions and money, the better the case would be that the business is a separate asset in a divorce.
Most people do not enter into marriage believing that it will end in divorce, but no one can predict the future. In order to be sure that a business owner’s actions will not end up making all or a portion of the company part of the marital estate, it would more than likely be a good idea to consult with a family law attorney. He or she could provide invaluable information regarding what the courts look at to determine whether an asset is part of the marital estate and help prepare for the possibility of a divorce.
Source: Forbes, “Why a Prenup May Be A Woman Entrepreneur’s New Best Friend,” Jenny Odegard, Aug. 2, 2017