The prospect of divorce brings strong emotions, including apprehension over how you may live after the marriage ends. If you own or run a business, you may have an extra layer of consideration beyond the usual splitting of property and determinations of parenting time.
A divorce lawyer for business owners in Toronto could help you understand how a divorce may affect your interest in a business. Depending on the structure of your business and your spouse’s involvement, one of our lawyers could explain how your assets and liabilities after the divorce could shift dramatically.
A divorce ends a marriage by dividing the marital property. Property, spousal support, and childcare are all sorted out between two spouses often with the assistance of a lawyer and through a judge who determines what is necessary or fair.
At the same time, spouses could evaluate aspects of a split on their own through written agreements and the help of their lawyer. An agreement could set out who gets what in the form of a prenuptial agreement or formed as divorce proceedings begin as a cooperative way of resolving potential disputes.
Because your business may make up a large portion of your net worth as your property and source of income, it could become a point of contention in a divorce. Do you run your business with your spouse, and do they have a separate ownership interest? How do you value your business, and how much could it be worth when dividing marital property?
A Toronto divorce lawyer who regularly works with business owners could answer these questions. By conferring with a lawyer, you could evaluate your business’s current situation and gain valuable insight into how a divorce may affect it.
Even if you are an investor in a business—in addition to or instead of an active manager running daily operations—a divorce could divide your interests in the company as marital property. Therefore, your stake in your business could be at risk if you do not take steps to protect it if a divorce is imminent.
For example, you could enter into an agreement with your spouse to keep your ownership stake and your right to dividends or distributions. With the help of one of our divorce lawyers, you could also review and adjust your company’s governing documents to ensure that your interests and rights automatically revert to the company or leave your control should it be necessary.
On a practical level, you may also need to review how the business operations could change if your interests change or become the property of your former spouse. Business succession planning and carefully drafting your business’s foundational documents with one of our lawyers long before divorce proceedings begin could ease uncertainty and provide precise mechanisms for moving forward.
A discreet and knowledgeable divorce lawyer could also assist Toronto business owners with avoiding controversy or disputes within the company itself. Rather than alarming other investors and business associates with rumors of a divorce, your lawyer could provide bespoke advice and protect you and your business as your marriage ends.
You likely started your business with passion and invested wholeheartedly in its growth. Should you pursue a divorce, you could confidently retain the products of your hard work with the aid of a divorce lawyer for business owners in Toronto.
Let one of the experienced lawyers from The Riley Divorce & Family Law Firm help you navigate the divorce process and save money here and in the future. We are always available, so call today for a consultation on your business.
Now you can have your Consultation with Paul Riley any time from the comfort of your own home. With video calls from Zoom, your Team at The Riley Divorce & Family Law Firm can meet with you virtually, and learn about your case. All you need is a smartphone, tablet, laptop, or desktop with a built-in camera and microphone.
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