What Are Some Concerns When Getting A Divorce When You Have A Family Business?

March 27, 2023

What Are Some Concerns When Getting A Divorce When You Have A Family Business?

If you are getting a divorce and have a family business, there are some concerns that you need to consider. Making sure such a breakup is handled right requires careful planning and willingness of all parties concerned to be flexible in the pursuit of their goals. Aside from preparing yourself for the legal and financial aspects of a divorce, it’s important to make sure to get adequate emotional support. This will make a huge difference in how you handle the process and how well you come out of it.

Financial Issues

If you have a family business, it’s important to know how this asset will be divided when you seek a divorce. It will depend on the state you live in and its marital property rules, as well as the value of the business. If you’ve invested any personal funds into your business, it’s likely that those investments will be included in the valuation process of the assets that are divided. Depending on how much the spouses agree on the value of the company, they may be able to work out an equitable settlement. And whether or not the family business is worth the amount being divided will depend on many factors, including the spouses’ level of involvement in the company and whether they can continue to work together for their mutual financial well-being. It’s also important to consider whether the business has shareholder loans, which are personal assets that may be included in the marital estate.

Business Issues

When a business owner gets divorced, there are many business issues that may arise. These include valuations, buyouts, and who gets what share. While no one wants to think about the possibility of a marriage ending, it’s important to consider what might happen in the event of a divorce. Divorce can be a stressful time and the stress can impact your ability to run your business effectively. As an owner of a family business, you should plan ahead for the possible negative consequences of a divorce on your business. If you are concerned about the potential consequences of a divorce on your business, it is advisable to speak with an experienced family law attorney about establishing protections in advance.

Legal Issues

If a couple owns a family business, it can present some legal issues when a divorce is sought after. If you want to avoid these issues, you may wish to consider putting a prenuptial agreement in place that will protect your interest in your business. If the business began before you were married, this may be an ideal way to ensure that your company will stay under your control in the event of a divorce. Another option is to work with a business valuation expert to determine the value of your company. These experts can be a great asset in determining the fair share of your company’s value during a divorce.

Personal Issues

One of the most rewarding aspects of owning or occupying a family business is knowing your family can count on you for support when times are tough. Having a divorce on the books is akin to losing your job or the family dog in the shuffle and it may be a good idea to take steps to mitigate any potential financial and emotional traumas. The best way to do that is to get professional help with a family business lawyer or two.

Categorised in:

K.J. Law P.A.