Jay A. Schwartz suggests 3 options for keeping a business open after divorce.
On behalf of Schwartz Law Firm PC on Tuesday, August 25, 2020.
Couples who share a family business will often work together to grow the company. This is often a viable system until the marriage dissolves and they have to determine what to do with the business. As part of the property division process, they will decide what happens to the company.
One of the first tasks is to determine whether it is covered by a prenuptial agreement. If it is, the terms of the agreement will be followed. In the absence of a premarital agreement, there are a few options that might be viable for the business if it is going to remain open.
Continue to co-own the company
Some people who go through a divorce can continue to work together in a professional capacity. If this option is the one that’s used, roles for both parties must be clearly defined. This should be put in writing so both individuals know what they are responsible for. The division of profits or pay information must also be covered in the contract that’s written up.
Sell the company to a third party
It’s often a good idea to sell the company. This can provide both parties with a financial boost that can help them to start out their new life. It may also make the property division easier since they won’t have to try to finagle the offers around the value of the business like they would if one person bought the other one out.
For the entire post see here from Schwartz Law Firm’s blog
Jay A. Schwartz is a Michigan based Attorney and owner of Schwartz Law Firm based in Farmington serving the greater Detroit, Michigan.
