When meeting with clients who own small businesses and are also married, I always pose the question to them, “what will happen to your business in the event of divorce?” The alarming number of responses demonstrate a lack of reliability in predicting the outcome of divorce. In fact, the majority of business owners who have taken the initiative to protect their businesses through shareholder and operating agreements are surprised to learn those same agreements provide little to no protection from a future ex-spouse. While operating agreements are one tool for the savvy business owner to protect their investment of time and capital in the business, it is just one piece to an overall comprehensive puzzle which when assembled properly provides owners with the greatest security and predictability. The following five strategies should be considered by every business owner to prepare for both marriage and divorce.

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