Many divorces have their sticking points. Whether a splitting couple argues over division of marital property and debts, child custody, child support or alimony, a snag can draw the divorce process out and make it tough to deal with emotionally. For those couples that own a business together, divorce can bring a whole host of additionally issues with which to deal. These individuals much figure out how the divorce will affect their business relationship and how to handle such a change, legally and emotionally.
One way to avoid entangling a business in one’s divorce is to have an attorney draft a prenuptial agreement that delineates the business as separate rather than marital property. This way, if a divorce occurs the business will be kept out of the property division discussion. Even if a couple does not have a prenuptial agreement in place when they marry, they can have a postnuptial agreement crafted to carry out the same function.
If it is too late to take these steps, a divorcing couple may make other arrangements in their divorce agreement that satisfactorily handle the business. For example, the spouses may agree for one of them to buy the other out of the business. This buy-out can take place by using already existing assets or the couple can agree to a payment plan utilizing the buying spouse’s future earnings from the business. These types of plans can help provide financial stability while ensuring the business is not unduly harmed by a divorce.
No matter what issues a splitting couple faces, a Worcester Divorce Lawyer can be invaluable. An attorney can help identify and discuss any legal options available to a divorcing party to ensure he or she is able to make fully informed decisions in his or her best interest. Only then can a divorcing party feel he or she has put him or herself on a path to a new and prosperous future.
Source: Jacksonville Business Journal, “How to divorce-proof your business,” Rosemary Frank, Mar. 2, 2014