The divorce rate in America – roughly half of all marriages – is a well-known statistic. So how does one guard against the prospect of losing control of one’s small business as part of an Orange County divorce?
A recent article in Entrepreneur magazine offers a number of tips. Some – such as signing a California prenuptial agreement – are straightforward, even obvious. Others come across as a bit Machiavellian, such as the suggestion that while your marriage is collapsing your first concern should be finding an angel investor to buy a stake in the business.
There is a broader point here, however; one which all business-owners contemplating an Orange County divorce need to keep in mind. Advance planning is key – and for many Orange County couples that means thinking ahead not only to where a marriage may end up, but also to where a business may be many years down the line. As Entrepreneur notes, “you have a $100,000 business… not anticipating that 20 years later it’s a $5 million business.” Advance planning can make sorting out a development like this a lot less painful.
These are the sort of scenarios where an Orange County divorce attorney can help with planning long before a divorce is contemplated, if ever. As the article notes, arrangements – especially those made after the wedding – are often stronger in legal terms if they have been in place for a number of years. For many couples, it is worth taking time when the marriage is good to consider how a business might be divided up in the unfortunate event that things turn sour.
These are the sort of decisions on which a Costa Mesa, Santa Ana or Anaheim community property attorney can offer detailed, professional advice. Just as estate planning is often best done while a person is still alive, so post-marital planning is often smoothest when it takes place in the less confrontational circumstances of a marriage that is going well. Orange County family law attorneys are here to help clients in good times as well as bad.
Entrepreneur: How to Divorce-Proof Your Company