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Business Owners & Divorce

Business Owners & Divorce in Jefferson City

Divorce can be overwhelming for any business owner. Beyond the emotional challenges, you face the very real possibility of losing part or all of your business, the enterprise you’ve worked tirelessly to build. As someone who has guided business owners through divorce proceedings for over two decades, I, Scott A. Hamblin, understand the unique challenges you’re facing and how critical it is to protect your livelihood.

The good news is that with proper legal guidance and strategic planning, you can safeguard your business interests while navigating your divorce. Let me walk you through the key considerations and protective measures that can make all the difference in your case.

Understanding Separate vs. Marital Property

The first step in protecting your business is understanding how Missouri courts classify property. This classification determines whether your business becomes part of the divorce settlement or remains yours alone.

Separate Assets

Your business may qualify as separate property if:

  • You established it before your marriage
  • You funded it entirely with pre-marital assets
  • You kept it completely separate from marital finances
  • Your spouse had no involvement in its operations or growth

However, simply starting a business before marriage doesn’t automatically protect it. If marital funds contributed to its growth or your spouse participated in its operations, portions of the business may become marital property.

Marital Assets: When Your Business Becomes Divisible

A business is typically considered marital property when:

  • You founded or purchased it during the marriage
  • Marital funds contributed to its establishment or growth
  • Your spouse participated in business operations, even informally
  • The business increased in value during the marriage due to either spouse’s efforts

Missouri follows equitable distribution principles, meaning the court divides marital property fairly, though not necessarily equally. Even if your business qualifies as separate property, its value still influences how other marital assets are divided.

Strategies to Protect Your Business During Divorce

Protecting your business requires proactive measures and strategic legal planning. Here are the most effective approaches I recommend to my clients:

Prenuptial and Postnuptial Agreements

The strongest protection comes from having clear agreements in place before issues arise. These legal documents can:

  • Explicitly designate your business as separate property
  • Outline compensation terms if the business gains value during marriage
  • Establish buyout procedures if divorce occurs
  • Protect future business ventures and investments

If you’re already married without a prenuptial agreement, a postnuptial agreement can provide similar protections. These agreements must be fair and reasonable to both parties to be enforceable in court.

I often advise clients to review any existing marital agreements carefully. Sometimes these documents contain provisions that could work against you, and we need to understand all terms before proceeding with divorce proceedings.

Additional Protective Measures

Beyond formal agreements and business structures, consider these strategies:

  • Keep detailed financial records showing the separation between personal and business assets
  • Maintain professional management of business operations separate from family finances
  • Document your spouse’s level of involvement (or lack thereof) in business decisions
  • Obtain regular business valuations to establish baseline values and track changes

Safeguard Your Business’s Future During Divorce

Protecting your business during divorce requires more than hope: it demands strategic legal action and experienced representation. The decisions you make now will impact your financial security for years to come. As your attorney, I, Scott A. Hamblin, bring over twenty years of experience helping business owners navigate these complex situations. I understand the intricacies of Missouri property division laws and have successfully protected countless businesses during divorce proceedings. Contact my firm today to discuss your specific situation.

He’s On Your Side

Scott will keep you up to date on all important developments in your case. When you need to get in touch with him, he will be there to answer your call or return it promptly.

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Scott A. Hamblin

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