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Protecting your finances during a business divorce

On Behalf of | Jun 10, 2024 | Business Law

When starting a business or joining a business venture as a partner, there are numerous factors you need to consider. Business planning and formation are crucial to the beginning phase of the company; however, the documents drafted and contracts created at the start of the business can aid in the event of a business divorce.

Much like the dissolution of a marriage, the dissolution of a business requires a legal process. Dissolving a business could evoke financial pitfalls, making it imperative that you not only understand how best to avoid or mitigate the costs and potential drawbacks associated with closing out your business.

Business divorce

At Codispoti & Associates, P.C., our law firm understands that it isn’t always an easy decision to leave your business or close it out entirely. This is why our skilled and experienced attorneys take the time to help our clients not only understand how to navigate this process but also how to protect them during and after the completion of the process.

We understand that there are many reasons to make this business decision. Whether you seek to disassociate from a business, are seeking to start your own separate business, want to transfer your ownership to another person or desire to close your business, you need to consider the process required to accomplish your goal and how best to protect your legal and financial rights when moving forward with the process.

Protecting yourself and your finances

Ending a business or your connection to it can certainly lower or sever any potential personal liabilities due to any judgments levied against the business; however, moving forward with a business divorce is likely to present tax consequences. Because there can be significant, it is important to have a full perspective of your situation and the actions you seek to take. This way, there aren’t any surprises when it comes to financial losses and possible liabilities.

No matter the reason for the business divorce, you likely have financial interests with the business. Thus, it is important that you understand how to best protect your finances as well as yourself when contemplating this business decision. A legal professional can help you understand your rights and options, answering any questions or concerns you might have.