Family business ventures can be both rewarding and profitable. Similar values, interests, and goals often make for a successful partnership, but with any business, disagreements can arise and lead to legal proceedings. The stakes are higher when the business is owned by a married couple and divorce is on the table.
In many family-owned businesses, both spouses contribute to its success. Even if only one spouse runs the business, the other spouse often contributes in many ways – by participating when needed, raising the children so the other spouse can focus on the business, helping to market the business, and more. Therefore, addressing how family business assets are divided in a divorce is not a simple matter. If you are a business owner who is considering divorce, you are probably wondering how your business will be distributed and how its value will be affected during the process.
Your pending divorce will almost certainly affect business management and operations and may impact other family members including children, siblings, and/or parents, depending on who is involved in the business. To avoid entanglement and further strife, we advise married business owners and operators in preparing a documented management plan to ensure the business will continue to run smoothly in the event of a divorce. We also provide family mediation services so that our clients are able to avoid the stresses and costs of litigation.
When spouses are business partners the potential for the dissolution of the marriage is a critial factor that must be considered for adverse consequences to the business. Although it is probably the last thing any business owner wants to consider, as owners, the smartest and most responsible way to protect themselves and their assets is to do just that, be proactive. When working with married business owners, the attorneys at the Obi Law Group prepare the couple for the worst-case scenario. As uncomfortable as it may be planning for all possible potential outcomes can provide peace of mind and guidance in the event of a marriage’s dissolution. And more importantly, allow the business to continue to thrive post-divorce.
If possible, matters of divorce between married co-owners should be anticipated and planned for in pre-or post-marital agreements. We encourage our clients to see this as a precautionary, collaborative effort with their spouse, in which they work together to come to an agreement that is suitable for both party’s needs and goals. Creating a prenuptial agreement is about protecting the individual’s respective assets and property.
Ultimately, these arrangements can even help spouses understand each other better and what they value most. Should different needs arise down the road, couples also have the option to alter their agreements, so long as both parties consent. The Obi Law Group can help you arrange for amendments, such as adding or reallocating property while ensuring the agreement remains effective and valid.
Family Business and Divorce
We will review the determining factors that go into the decisions surrounding divorce and business owners including:
If you're a business owner, entrepreneur, or licensed professional facing a marital dispute or pending divorce situation, please give our office a call at 502-309-2512 to see how Heartfelt Counsel can assist you in legal matter.
Fernandez & Haynes PLLC, 401 W Main St, Louisville, Kentucky 40202, United States
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