On behalf of Gary Kirk of Kirk Montoute LLP posted in High Asset Divorce on Tuesday, March 1, 2016.
Couples that divorce often have a lot at stake. This is particularly true when a family business is involved. The initial thought for many in this situation concerns how the asset will be divided. While this is of course an option, depending on the circumstances it may be better for all parties involved to find a way to keep moving forward with the business, together. Despite every couple being different, in this post we will provide several tips that could prove to be helpful for couples who find they are in this situation.
Couples who decide to keep their business alive despite divorcing need to create a new working relationship. If trust was an issue in the marriage, it makes sense it could continue to cause problems regarding the business moving forward. Often this means that financial matters will need to be shared openly. It is also a good time for both to define the roles they hope to play in the business.
For this to be successful there is no question that the couple has to find a way to get on the same page regarding the business. The things that will prompt couples to do this will vary depending on the specific situations. Examples could include children the couple shares or the amount of time and energy the couple put into the business while they were still married.
It is inevitable that at some point conflict will arise related to the running of the business. When it does, keeping emotions in check is vital. Doing so could keep the business issues from escalating into something they really aren’t about.
When a couple decides they cannot continue to work together following a divorce there are many matters that need to be addressed. Sometimes the business venture will completely come to an end and the assets will be liquidated. Other times, developing an exit strategy for one person to leave is necessary. A family law lawyer can be of assistance in this.
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