When a California couple begins the process of getting divorced, the future of their business is unknown. With as vulnerable and important an asset as a business, couples would benefit from starting right away to implement protective measures to support their company during the uncertainty.

Businesses that have adequate support during divorce will have a much higher chance at surviving unscathed than ones that lack a strong foundation.

Fortifying business against divorce

According to Inc.com, couples should disclose the adjustment of all assets to each other and to company records. Lack of evidence that shows the movement and acquisition of assets can render any previous agreements ineffective. If a couple is getting a divorce and they do have a prenuptial agreement, they should be aware that the outcome of their business will account for whatever formalities were initially discussed in their prenup.

People can also buy their spouse out of a business agreement so they can acquire full ownership of the entity. There are several ways that people could accumulate adequate funds for such a transaction including a property settlement note or even redistribution of retirement funds.

Dividing a business in a divorce

While there are many factors that influence business division during a couple’s divorce, there are three general ways in which operations may continue according to Forbes. Perhaps the least popular is that both spouses continue running the business. In some circumstances, this unique arrangement can be both beneficial and effective. However, it is more likely that one individual will maintain the business independently or the sale of a company and its assets occurs.