Thousands of people across the United States and in North Carolina get divorced every year. While nobody likes to think about divorce when they are first getting married, if you and your business partner are considering tying the knot in North Carolina, it is important to consider all possibilities and points of the relationship. In the event that you and your partner are getting married and also own a business or are considering starting one together, you should be aware of property division laws in our state. According to the State of North Carolina, we are an equitable distribution state.
This does not necessarily mean that property is split 50/50 during a divorce. What it means is that the courts will try to fairly distribute marital property after a divorce, and most commonly the courts will start from a 50/50 split. However, this can still get messy, so it is a good idea to plan ahead. Business owners in North Carolina are encouraged to consider the benefits of a prenuptial agreement if both members of the marriage are business owners, either separately or jointly.
A prenuptial agreement is like a blueprint in the event of a divorce. It will outline who gets which assets from the business and how the business will run in the divorce aftermath.
Another good tip is to ensure that your business is structured correctly. Depending on the nature of your business, this may mean forming an LLC or a C-corporation. Especially if both parties are involved in the business, the business itself may be considered marital property endless divisible by the law of equitable distribution, but having the proper framework in place will help separate individual assets from business assets.