Figuring out what to do with a family business in a divorce can be complicated. It’s prudent to have plans in place for your business before the idea of divorce is even on the table. That way, you can be clear on what steps to take if life leads you down that path. When it comes to divorce and family business in Lexington, KY, protecting your investments is essential.
Divorces can be complicated legal matters. When it comes to dividing property and debts, the situation can get all the more convoluted. Working with a Lexington divorce lawyer can help you ease through the process, especially if you work with a professional who has experience handling family business affairs. Regardless of your next move, it’s beneficial to understand how a divorce can impact your ownership of a family business.
Divorce and Family Businesses in Lexington, KY
Family businesses make up 64 percent of the gross domestic product in the United States. Between 2021 and 2022, 1,164 establishments opened in Kentucky alone, including 11,033 small businesses. Small businesses are huge support systems across the state, and a good number of them are run by families. While keeping a business in the family can be a rewarding and sentimental move, it can also lead to potential pitfalls down the road.
Kentucky ranks in the top five for divorce rates nationally. The divorce rate in 2022 was 3 per 1,000 people, and it’s hovered around that percentage ever since. It can be difficult to plan for a divorce, but it is especially important if you have important assets hanging in the balance, including ownership of a family business.
After filing for divorce in Kentucky, parties in a marriage must live separately for 60 days before a divorce decree can be entered. Living separately may include being in the same home but without sexual cohabitation.
Filing for divorce involves starting the case by filing and serving the petition. The other spouse must then respond to this petition, and you both can begin to disclose financial information and fill out all applicable forms with the court to move the process along.
How To Maintain Ownership of a Family Business in a Divorce in Lexington
If you feel that you’re fully entitled to your family business, there are some avenues to explore when it comes to staking your claim.
- Clear definitions of property. In Kentucky, marital property is to be divided equitably between spouses in the event of a divorce. Separate property, however, is not included in this. If you owned the business before your marriage, it may be protected from division in a divorce.
- Marital agreements. There are a number of marital agreements you can utilize to protect your share of a family business, including prenuptial agreements, postnuptial agreements, and buy-sell agreements.
- Proper business planning. It’s important to take planning seriously when you start your business. It’s helpful to clearly formalize ownership of the company and define the goals.
- Separate business finances. Maintaining separate records for your personal finances and business finances can make it easier to track expenses and establish if marital funds are funding the business.
No matter the details of your divorce, it’s wise to consult with a Lexington divorce lawyer to help you through the process. Navigating a divorce on its own can be challenging and tiresome, and determining how to dive into a family business can add more complications to the process. It can be helpful to have access to a legal professional who understands how to navigate these types of cases.
FAQs
Q: Is My Ex-Wife Entitled to My Investments in Lexington?
A: Your ex-wife may be entitled to your investments in Lexington. When you go through a divorce in Lexington, KY, you can expect all marital property to be divided equitably between the two parties. However, your spouse is not entitled to any property you owned before the marriage or after legal separation.
Q: How Can I Protect My Investments From Divorce in Lexington?
A: You can protect your investments from divorce by establishing clear ownership of the assets in relation to the marriage so you can prove they were not purchased together with your spouse. While spouses are expected to split marital property equitably during a divorce, they don’t have to divide all their property. You can also look into using a prenuptial agreement, postnuptial agreement, buy-sell agreement, or trust to further protect your assets.
Q: Do I Need to Work With a Lexington Divorce Attorney?
A: You’re not legally required to work with a Lexington divorce attorney, but it is highly recommended in most cases. This is especially true if you have complex arrangements to make, like splitting a business you own together. A Lexington divorce lawyer can guide you through any challenges with the divorce process and help you make decisions that secure your future.
Q: How Do I Protect My Business in the Case of a Divorce in Lexington?
A: You can protect your business in the case of a divorce through proper planning. You can keep your ownership over a family business safe by establishing clear instructions for what’s to happen in the case of a divorce. Both prenuptial agreements and postnuptial agreements can help you outline procedures for asset division. Protecting your business during a divorce involves some foresight on your end.
Discuss Your Case in Detail With a Lexington Family Lawyer Today
If you’re going through a divorce and have concerns about where your family business stands, it’s a good idea to connect with a Lexington family attorney to better understand all your options. A skilled legal professional can help you figure out how to move forward with your divorce while protecting your interests and securing a fair outcome.
At Stange Law Firm, we have experience navigating all types of divorces, so we’re used to adapting to unique situations that require dedicated care. Don’t leave the fate of your business up in the air. Get in touch with our team to set up a consultation and talk about your case in more detail today.
