How to Divorce Proof Your Business


Small business owners should be concerned about the potential effect a divorce in Pasadena could have on their business. If you’ve spent several decades building a successful company, the last thing you want to do is be required to turn over 50% of your business assets to your spouse.

The best step you can take as a business owner is to have a prenuptial agreement that clearly states that you wish to keep your business assets separate from your marital property in the event of your divorce. If you’re already married, a postnuptial agreement can serve the same purpose.

Agreements can be thrown out in court if there is evidence that they are unfair, so you should always keep your business finances separate from your personal finances. It is best to make a point of paying yourself a market salary to clearly position the business as your employer. You should also keep in mind that the court will be more likely to award your spouse a portion of your business assets if he or she has been actively involved in your daily business activities. If you want to keep your business assets separate from your marital assets, your spouse needs to have little or no involvement with your business activities.

If divorce seems imminent, it’s too late to take preventative measures. However, you can protect your business by obtaining an independent professional business evaluation. Once you know how much your business is worth, you can buy out your ex’s share using other marital assets. If you don’t have enough marital assets available to buy out your ex’s share, consider raising the money by seeking out investors for your business or borrowing against business collateral.

How Can We Help?

If you have questions about how divorce law in Pasadena will affect the division of your business assets, please call our office at (626) 683-8113 or email us at Our team of attorneys are eager to help you protect your assets and plan for the future of your business.