Divorce can be difficult, especially when a business is involved. In Oregon, the division of assets can become more complicated as business interests come into play. Protecting your business during a divorce requires strategic planning and knowledge of state laws.
Understand business valuation methods
The first step in protecting your business is understanding its value. Oregon courts use various methods to determine business value and base it according to three approaches:
- Asset-based
- Income-based
- Market-based
A professional appraiser familiar with these methods can help ensure your business receives a fair valuation. A precise valuation can also help you negotiate a more favorable division of assets.
Explore options for dividing business interests
After valuation, consider options for dividing business interests. You might buy out your spouse’s share, offer other assets in exchange or arrange for continued shared ownership if feasible.
Each option has pros and cons, so weigh them carefully based on your financial situation and future business plans. With the right support, you can go through these choices to find the best solution for your circumstances.
Utilize prenuptial and postnuptial agreements
Prenuptial and postnuptial agreements can be powerful tools in protecting your business assets. If you have a prenuptial agreement, it may already outline the division of business interests. If not, drafting a postnuptial agreement can help address these issues. These agreements can clarify asset division and reduce conflict during divorce proceedings.
Maintain business operations during divorce
Divorce can be distracting, but maintaining business operations is crucial. Keep business and personal finances separate and focus on operational continuity. Communicate openly with your team and stakeholders about your commitment to the business despite personal challenges. This helps stabilize business operations and preserves their value during divorce proceedings.
Moving forward with confidence
Protecting your business during an Oregon divorce requires careful planning. With these strategies, you can overcome this challenging period with greater confidence. Prioritize your business’s future and seek professional support to ensure a fair and strategic outcome.
