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How to handle divorce as a startup owner

On Behalf of | Jan 22, 2018 | High Asset Divorce |

When a couple gets a divorce in Pennsylvania or elsewhere, it may be necessary to divide assets acquired during the marriage. A business generally qualifies as an asset that may be divided in a divorce settlement. However, there may be some question as to how to split a startup company if it has yet to be monetized. One way to handle this issue may be to create a prenuptial agreement.

This may make it easier for those who want to get divorced but don’t want to give a portion of a startup’s value to their spouse. In most cases, these decisions are made based on emotions instead of facts. A prenuptial agreement may take the emotion out of this process. It may also help couples avoid disputes that could potentially take years to resolve. One woman spent five years battling her husband who owned a startup in the tech industry.

It is thought that marriages may fail in Silicon Valley because entrepreneurs are under stress and don’t expect to succeed in their endeavors. Therefore, getting a prenuptial agreement could be an acknowledgment that divorce is a distinct possibility. Those who create a successful company but who don’t have a prenuptial agreement may find solace in the fact that they may still be financially stable after a settlement is reached.

In a divorce involving millions of dollars in assets, creating a divorce settlement may take patience. It might be easier for an individual to obtain a favorable settlement by seeking the help of an attorney to help with a high-asset divorce. An attorney may be able to use state law and relevant facts in a case to help a person receive marital property that he or she may be entitled to. If a prenuptial agreement exists, an attorney may be able to review it.