Family Lawyers for your Family Business

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 i 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 (i.e., a Business Succession 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. 

Potential Pitfalls

When spouses are business partners the potential for the dissolution of the marriage is a critical 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:

• Mediation Services
• Drafting, negotiation, and review of Pre-nuptial and Post-nuptial agreements. 
• Business Succession Planning
• Equitable distribution rules for businesses including the three-step process for distributing assets and liabilities
• Equitable distribution of a business and its relationship to alimony
• Determination of standard of living and income from business
• Business valuation methods including the income, asset, and market approach
• Business distribution methods including buy-out, co-ownership, and selling the business
• Relevant tax issues for business owners and divorce
• Strategies to consider if you are heading for a breakup
• Preemptive strategies to prevent you from losing your business in a divorce

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.