Divorce can have an enormous impact on one’s financial life. For those in business for themselves, it is critical to be thorough about shielding one’s business from property division. There are a number of ways to do this, and the means one uses should be uniquely tailored to one’s situation.
Ideally, one should prepare for the possibility exposing one’s business to divorce before one is married. This can be done by a prenuptial agreement. In this approach, one identifies business assets as separate property so that they will not be exposed to division in the event of divorce. The key to this would be to keep these assets separate throughout the divorce as well, since failure to do so could expose them to division. For those who are already married, a postnuptial agreement may accomplish the same goal.