As a business owner, you likely put a considerable amount of time and effort into ensuring the success of your business. Unfortunately, when you get a divorce, you’ll find that this complicated matters further, as you’ll need to split your attention between your relationship and your company. One thing you may worry about is whether or not your spouse will take the information about your company to a competitor. As divorcing business owners, you’ll want to consider a non-compete agreement. Luckily, the following blog explores what you should know about these matters and how Los Angeles high net worth attorneys can help protect your valuable assets.
What Challenges Do Divorcing Business Owners Face?
When two spouses who own a business divorce, several issues can arise. Generally, the most challenging part of this process is determining the value of the business. Once a valuation is complete, you’ll need to decide how you will divide the company, which starts by determining whether or not it is considered marital property.
If you and your spouse are business partners, this isn’t a question. However, if you or your partner own a business, this may be more complex. To determine whether or not this is marital property, the courts will examine when the company was started or acquired. If it was obtained during your marriage, it is considered joint property. If it was established before your marriage, it may be deemed separate property. However, the increase in value that occurred after the marriage is considered marital property.
Is It Possible to Establish a Non-Compete Agreement?
When you and your spouse divorce, you may be worried about whether or not they will start a competing company or work for a known competitor. However, you may be able to negotiate a non-compete agreement with your ex-spouse. Essentially, this means your spouse is restricted from competing with your company and protecting your confidential information.
It’s important to understand that there are limitations you should know about. This includes a time limitation to avoid being overly restrictive, and geographical restrictions allow your spouse to work outside a reasonably prohibited space.
How Can an Attorney Help Me Through These Matters?
Negotiating a non-compete agreement, especially with a spouse while going through a divorce, can be an incredibly complicated issue. As such, it’s in your best interest to connect with an experienced attorney as soon as possible. As such, enlisting the help of an attorney who can help you through these matters is essential. Unlike a traditional employer-employee relationship, your non-compete agreement with your spouse will be used as a negotiation point. This means you can offer compensation for accepting the terms.
Because this is complex, letting an attorney help you through these matters. At the Zitser Family Law Group, our dedicated legal team has experience handling complex divorces. Contact us today to discuss to discuss these circumstances with a member of our dedicated team today.
