For Wisconsin entrepreneurs, one of the most frightening concerns is the thought of losing their business in divorce proceedings. While many individuals may focus on real estate or retirement accounts, entrepreneurs have generally spent years developing a business. By taking certain steps during the divorce process, they may be able to protect their investment.
Before an entrepreneur starts to be concerned about property division, he or she may seek legal advice or research the relevant laws pertaining to ownership of the business. If the business was a solo operation, the other spouse may not be entitled to half of the business. Instead, the proportion of the business that may be subject to division can rely on a number of factors, such as the role of the other spouse in the business, the length of the marriage and the ways that the parties contributed to the business and the marriage. Before the entrepreneur begins to think about how the business will be treated, all of the assets of significant value may be identified and evaluated. This process involves evaluating the business assets and possibly getting an appraisal of the business itself.
An important consideration in the divorce process is how the entrepreneur wants to proceed after the divorce. He or she may wish to continue operating the business. He or she may want to sell off the business and split the proceeds. This may also require going back to the couple’s worksheet and trading other assets in exchange for a greater stake in the business.
Another step that entrepreneurs take during the divorce process is to choose their divorce team wisely. They may retain the service of a tax adviser, accountant and family law attorney. Legal counsel may provide the entrepreneur with guidance on the legal issues involved in the case and an objective opinion regarding how to approach the process.
