After Benzos the Amazon CEO and Washington Post owner has announced his divorce, what is potentially leading to the costliest divorce settlement in history with $137 billion at stake.
There are no reports indicating the couple had a prenuptial agreement, meaning the wealth accumulated during their marriage would have to be split evenly if no agreement was reached otherwise.
Since the time of the initial announcement, agreement was reached by both parties settling the split and the future control of the company. In the big scheme of things, it was a good outcome for both parties and it ensured the continued stability of the company.
For business owners facing divorce, the threat of losing the business as part of the divorce can be an all too real threat. In cases before, businesses have been lost to divorce agreements – either because of property laws or as the result of a sale in order to raise cash.
If you have a business and are you thinking about filing for divorce, we want share some tips with you. It is a good idea to always engage in these practices…not just when a divorce seems imminent.
STRATEGIES TO FOLLOW IN BUSINESS TO LIMIT YOUR EXPOSURE BEFORE DIVORCE
1.-Keep the family’s finances separate from those of the business.
2.- If you receive payment from your business, pay yourself a reasonable salary
3.- Sign a prenup. If your business existed before you were married, you could assign it as a separate property owned by only you in your prenuptial agreement.
4.- Secure an early postnup. This is the agreement that is signed after the wedding. You can designate your business as a separate property owned by only you. It’s ideal that you sign this postnup before the marriage dissolves — ideally more than seven years before a breakup.
5.- Have insurance. A whole-life insurance policy that establishes cash value can be liquidated to provide the funds to buy out a spouse’s share of the business if need be.
STRATEGIES TO FOLLOW TO KEEP YOUR BUSINESS AND LIFESTYLE AFTER A DIVORCE SEEMS IMMINENT OR HAS BEGUN
1.- Trade other assets in exchange for 100% controll of the business. he couple’s total assets are added up and then divided. You might want to cut assets such as retirement accounts, the family residence, or vehicles, in exchange for 100 percent of the business.
2.- Arrange to make any payments to an ex-spouse over time. You may be able to arrange to pay an ex-spouse gradually in monthly payments.
3.- Get a good estimate of the value of the business. Once you have that number, get a second opinion to review the terms before you agree to it.
4.- Fire Your Spouse. If you have hired your ex-spouse, ease your spouse out of your business (legally)
5.- Search for professional advice. Retain the services of an family lawyer who can protect your interests and give you sound legal advice based on decades of experience.
If you recently have been served with divorce papers in Long Beach, Seal Beach, Lakewood, Palos Verdes, San Pedro, Newport Beach, or Los Angeles; we can help you to understand the business impact of your situation and advise you in how best to respond and protect your assets. Call us to schedule a free consultation at 562-439-9001.