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Want To Protect Your Business in a Divorce? Be Batman

By Edward Tan, JD | Last updated on

Divorce can be hell. It can be hell on your family and friends. Hell on your mental health. But most of all, divorce can ruin your business.

You might be thinking right now that the last thing you'd be worried about in a divorce is protecting your business.

Not necessarily.

As much fun as it may be to live like a college student again, chances are the joys of eating a cup of instant noodles in your underwear will start to wear pretty thin if a divorce makes it an everyday necessity.

So what can you do to keep get divorced in a way to keep you eating steak and not Top Ramen? 

1) Be the Batman

No, I don't mean be born to billionaire parents. Although that would be awesome (money and fighting crime are cool). What I mean is that the best way to protect your business in a divorce is preparation for the worst case scenario.

Batman is the most dangerous man in the DC universe because he's smarter and more prepared than everyone else around him. That means before you even think about tying the knot, you should . . .

2) Check your local state laws

How your business will be divided is largely determined first by whether your state is a community property or common law state.

Community property basically means that any businesses, money, or assets acquired during marriage becomes the equal property of both spouses. During a divorce, that means you're looking at a 50-50 split.

A common law state allows each spouse to keep what they have even if it was acquired during marriage, as long as it's labeled separate. Think of it like putting your name on food you want in the fridge. If you're legally the sole owner of something, you'll have a better chance of keeping it after a divorce.

3) Get a pre-nuptial agreement

Nothing can turn a conversation sour faster than talking about pre-nuptial agreements. But if you really want to protect your business, laying out who gets what in a divorce is an absolute necessity.

4) Be honest and stay clam

Being honest with your spouse about your business/feelings will go a long way in keeping a divorce civil. And staying calm will allow you to continue to make good decisions for your business while you deal with a divorce.

5) Be the Batman

He's on here twice because he's Batman. And there's no better way to protect your business in a divorce than thinking like him.

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