Some couples that get married are also business partners. Whether the business is just getting started or well established, it is wise for the two parties to create a prenuptial agreement and/or a buy-sell agreement prior to the marriage. Either of these can protect the business in the case of a divorce. However, many couples do not create this agreement before their wedding, and a postnuptial agreement could accomplish the same result for married couples. Family lawyers in Georgia can assist these parties in protecting a business should a divorce occur subsequently.
A spouse can protect business assets to pass on to one’s children by using a trust. By putting assets in a trust in the name of the child, the assets can be protected in the event that the child eventually obtains a divorce. While this may not protect the full amount of the assets if that parent obtains a divorce, it does protect it for the next generation.
When two business partners are working through the dissolution of their marriage, they can always make the decision to continue business operations together. However, if the couple is progressing through a high-conflict divorce, this option may not be a realistic possibility. In that case, one has the option to borrow, buy out or add a new business partner. These options provide ways for one party to keep all or part of the business, with the other spouse receiving cash funds or other assets equal to his or her financial interest in the business.
Parties working through divorce as business partners have the challenging task of not only dividing their personal property, but also figuring out what to do with the business. Those in the family law field can assist through this process, making the client aware of all viable options in each aspect of the divorce. Those parties confronting these issues in Georgia can each secure legal counsel to protect their interests and fight for an equitable share of any business assets.
Source: marketwatch.com, “How to protect your family business during a divorce“, Daniel Thompson, Feb. 10, 2017
