The CEO's Pre-Divorce Checklist:
7 Financial and Legal Steps to Protect Your Business Before a Divorce Begins

If you are a business owner or executive, the thought of divorce is more than just a personal crisis. It's a strategic threat.

You may be feeling stuck, "walking on eggshells" at home, and paralyzed by uncertainty. As a leader, you are used to being decisive and in control. Yet in this one, deeply personal area, you feel confused and vulnerable.

Your mind is likely racing with questions that keep you up at night:

• "If I talk to a lawyer, does that mean I have to file?"

• "What happens to my business if I'm served with papers tomorrow?"

• "Is there one mistake I could make right now that would cost me everything?"

This fear of the unknown is the "villain" in your story. It's a system designed to process cases, not to protect your legacy. But "waiting to see what happens" is the single most dangerous strategy you can adopt.

At Fogelman Law Firm, we understand this fear. Our philosophy is that justice demands you understand the process so you can make the right decisions. The best way to regain control and move from confusion to empowerment is to have a quiet, confidential, and strategic plan.

This is not a plan to start a divorce. This is a plan to prepare for your future, no matter what it holds. It is a plan to ensure that if a divorce becomes necessary, you are not the one on the defensive. You are the one in control.

Here are the 7 financial and legal steps you should take before a divorce begins.

The "Prime Directive": What NOT to Do (The Failure We Must Avoid)

Before we get to the "to-do" list, we must cover the "do-not-do" list. A single panicked mistake in the months before a filing can destroy your credibility with the court and cost you hundreds of thousands of dollars.

1. DO NOT HIDE, MOVE, OR TRANSFER ASSETS.

This is the cardinal sin. In a moment of panic, you might be tempted to transfer your ownership in the business to your brother, "sell" a valuable asset to a friend, or move large sums of money to an undisclosed offshore account. This is called "fraudulent conveyance" or "dissipation of assets." It is illegal. It will very likely be found by even a newly minted divorce attorney - and will certainly be discovered by a forensic accountant. The court will not only claw the asset back but will oftentimes punish you severely by awarding a larger share to your spouse. Your credibility will be permanently lost.

2. DO NOT "PRE-PAY" DEBTS TO FAMILY OR FRIENDS.

That $50,000 "loan" your parents gave you to start the business? "Paying it back" right before a divorce is likely to be seen as a fraudulent transfer of marital assets. If your circumstances involve a real loan, talk to your divorce attorney about how to structure the payment in a way that will be easy to defend later.

3. DO NOT DESTROY FINANCIAL RECORDS.

Wiping your computer, shredding bank statements, or deleting QuickBooks files is an act of "spoliation of evidence." It is seen as an admission of guilt. At best, the court will assume you are hiding the worst-case scenario; and you could end up being penalized with fines and legal fees that far exceed what value you thought you were preserving.

4. DO NOT SPY ON YOUR SPOUSE.

Do not install spyware on their computer, put a GPS on their car, or access their private emails or texts without their permission. This is illegal, can have criminal consequences, and will backfire on you in court.

5. DO NOT MOVE OUT OF THE HOUSE (YET).

While it may seem like the right thing to do to de-escalate, moving out can have serious legal consequences regarding child custody and access to the home. Do not make this move until you have spoken with an attorney.

The path to failure is paved with these panicked, short-sighted mistakes. The path to success is a calm, strategic, and legal plan.

The 7-Step Confidential Pre-Divorce Checklist

This is your plan. It is quiet, it is confidential, and it is designed to put you in a position of strength and clarity.

Step 1: Assemble Your "Personal Board of Directors" (Quietly)

You would never run your business without expert advisors. Do not try to navigate a high-asset divorce without them. Your team should include:

• A High-Asset Divorce Attorney: You need someone that works on divorces all day - and preferably divorces like the one you have; think twice before hiring someone dabbling in divorce law while in criminal court most of the day and then drafting a few estate plans before heading home for the day. You are looking for a firm that focuses on domestic relations cases and has a deep bench of experience with complex cases like yours in the greater Cincinnati area.

• A Forensic Accountant: At your attorney's direction, you may engage a forensic expert to give you a preliminary, confidential valuation of your business as part of the work product for your divorce. This "baseline" number is an invaluable strategic tool that gives you a realistic picture of the stakes before negotiations ever begin.

• A Financial Planner: This professional will help you model your future. They can show you the long-term impact of any proposed settlement, helping you understand what you need to secure your lifestyle post-divorce.

Step 2: Create a Complete Financial "X-Ray"

This is the most time-consuming, but most valuable step. You are not hiding these documents; you are organizing them so you have a complete and accurate picture. This information will come out in the "discovery" process, and having it ready gives you control.

Create a secure digital file and gather:

• Business Documents:

• Years of complete tax returns (all schedules).

• Years of P&L statements, balance sheets, and cash flow statements.

• All business loan applications and agreements (these are vital, as they contain your own sworn statements about your company's value).

• A copy of your buy-sell agreement, partnership agreement, or operating agreement.

• Personal Documents:

• Years of personal tax returns.

• Years of all bank and investment account statements (personal and joint).

• All mortgage and loan documents.

• A current credit report.

• Compensation Documents:

• All executive compensation plan documents (stock options, RSUs, deferred comp).

• All grant and vesting schedules.

• Your most recent 401(k) and pension statements and any tracing all the way back to before your marriage if you had any money in retirement before the marriage.

Step 3: Understand Your Business's Legal DNA

This is a step most business owners miss. Find and read your Shareholder Agreement, Operating Agreement, or Buy-Sell Agreement.

This document may be your first line of defense. As we explore in the related ebook to this Deeper Dive, this agreement might contain a "divorce clause" or other provisions that dictate:

• A pre-set formula for valuing the business.

• A right of first refusal, allowing you or your partners to buy out a spouse's interest.

• A clause preventing a spouse from ever becoming an "involuntary" shareholder.

This document could be the key to protecting your business from disruption.

Step 4: Secure Your Operational Cash Flow

This is a purely practical, defensive move. The moment a divorce is filed, it is common for a judge to issue "Financial Restraining Orders" (FROs) that freeze all marital accounts. This can paralyze your business, preventing you from making payroll or paying suppliers.

As we cover in the related ebook, one of the best strategies is to secure a business line of credit now, while your financials are stable and no divorce is pending. This is not for personal use; it is an emergency survival tool to ensure your business operations remain stable.

Step 5: Begin "Tracing" Your Separate Property

This is the work that will save you the most money. If you claim an asset is your "separate property," the burden of proof is on you. You must "trace" its origins.

Start digging now. Find:

• The bank statements from the month of your marriage.

• The closing documents from when you bought your business (if pre-marital).

• The inheritance paperwork or check showing the funds coming into your name only.

• Statements from an old 401(k) or investment account that you owned before the wedding.

As we explain in , this documentation is the only thing that separates a successful "separate property" claim from a failed one.

Step 6: Understand Your Total Liability

A divorce divides debts as well as assets. You need a complete picture of your total liabilities.

• Did you personally guarantee a business loan? That is a marital liability.

• Are there pending lawsuits against your business?

• Are there significant tax liabilities?

You must have a complete personal and business balance sheet. You cannot negotiate a fair division of assets without a fair division of debts.

Step 7: Schedule a Confidential Strategic Consultation

This is the final, and most important, step. This is "Step 1" of our firm's 3-step plan: 

"1. Schedule a simple phone appointment."

A pre-divorce strategic consultation is 100% confidential and protected by attorney-client privilege. This meeting is not "filing for divorce." It is an information-gathering session.

In this meeting, you will:

"2. Understand your legal options and possible outcomes." We will review your specific situation, your documents, and give you a realistic range of potential outcomes.

"3. Execute your plan with confidence." You will leave the meeting with a clear, actionable plan. You will have replaced fear and uncertainty with clarity and control.

Your Transformation: From Uncertain to Empowered

This checklist represents the transformation at the heart of our firm.

Before: You are feeling uncertain, fearful, and anxious about your financial future. You are paralyzed, walking on eggshells, and worried about making a wrong move.

After: You have clarity, financial security, and confidence moving forward. You have a confidential plan. You know your rights. You know the value of your assets. You know what to do and what not to do.

The path to failure is being blindsided by a divorce filing. You are instantly on the defense, your accounts are frozen, and you are scrambling to find documents, all while making panicked, emotional decisions.

The path to success is controlling the narrative. It is making smart, strategic, and calm decisions from a position of strength. You protect your business, secure your financial future, and move forward with your legacy intact.

Download Your Full Playbook

This checklist is your starting point. To understand the full process and the five most costly mistakes every executive and business owner must avoid, download our free guide.

Take Your First, Confidential Step

The best time to build a legal strategy is before you need one. If you are a business owner or executive concerned about your future, let us help you build your confidential plan.

If you are ready to choose a better path forward for you and your family, take the first step. Schedule a confidential consultation with The Fogelman Law Firm, and let us show you how to navigate your divorce with the dignity you all deserve.