Own a family business in Missouri or elsewhere? Getting a divorce? What will happen to the business when all is said and done? Is it possible to spare the company from the ravages of divorce?
When couples get married, they dream of their happily ever after. Unfortunately, the sad reality for many couples is marriage ending in divorce. When this happens, assets are generally divided in a fair way. How does this work with a family business, though?
Many judges understand that divorce can be brutal on a business, especially if one spouse has to buy out the other or is forced to sell in order to pay off the other. This is something that the courts like to avoid if at all possible. One way to ensure either of these things do not happen is to seek pre- or postnuptial marital contracts long before divorce is even a thought in either party’s mind. Such contracts can describe, in detail, what assets each party is entitled to receive and what will happen with the business should the marriage come to an end.
When the protections offered in a pre- or postnuptial agreement are not sought, and protections through certain business planning options are not utilized, there are still options to keep a company up and running while achieving a fair and balanced property division settlement. This is where negotiations come into play. A divorce law attorney can assist Missouri residents in negotiating terms with which both parties are satisfied and that minimize any negative impacts on the family business.
Source: njbiz.com, “How to protect your family business from a divorce“, Jennifer Millner, Nov. 14, 2017