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Oakland County asset division attorneyThere is nothing more stressful and demanding than a divorce. It overturns almost every part of your life, and no matter your profession, you will feel the effects of the divorce. Those who own a professional practice or their own business have slightly different concerns when it comes to a divorce, specifically when marital assets are being divided. 

All marital property will be subject to division in a Michigan divorce. Marital property is any property that was acquired by either spouse during the marriage, including businesses. 

Property division can be difficult, especially dealing with family businesses or practices. Here are four ways to protect your business during your divorce:

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MI divorce attorneyIf you are a business owner, chances are your business is one of the most valuable assets that you own. Along with the family home and your savings accounts, your business must also be appraised and distributed properly during your Michigan divorce. Often, small businesses require hours upon hours of tireless work and days of patience while the company is built from the ground up. The last thing you want to see is your business become just another asset that is taken apart, piece by piece, and liquidated to divide in a divorce. Fortunately, there are a couple things you can do to protect your business as much as possible. Here are five ways you can help keep your business under your control during (and after) your divorce:

Protect It in Writing

The easiest way to protect your business during a divorce is by getting a prenuptial agreement. The agreement can state how the business will be handled in the event of a divorce and it can also basically prevent your spouse from getting any of it. If you are already married, a prenuptial agreement will do you no good, but a postnuptial agreement can help. This is basically the same thing as a prenuptial agreement, but it is signed and entered after you are already married.

Pay Yourself a Decent Salary

This can be important because if you do not pay yourself enough money, your spouse can argue that he or she did not benefit from the growth of the business. Instead of taking a modest salary and waiting for retirement, take a generous salary, that way you can say you “invested” your profits into the family, rather than putting it all back into the business.

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Oakland County Bar Association State Bar of Michigan Collaborative Practice Institute of Michigan WCCDBA Woman Lawyers Association of Michigan
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