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Creative Family Law Solutions
During Difficult Times

Dealing with the family business during a divorce

| Feb 13, 2017 | Firm News, High Asset Divorce |

Although it is not rare for a California couple to get a divorce, it can be a difficult process to divide up all marital property especially if one of the former spouses started a business. Ultimately, how a person protects the family business will depend whether it was started prior to the marriage or afterwards.

People who start a business before getting married can protect themselves by getting a prenuptial agreement signed. The prenuptial agreement provides evidence that the business was already in the person’s possession when the couple tied the knot. In the event a divorce occurs, the prenup will be taken into consideration, assuming that it is valid and that full financial disclosures were made.

If the business was started after a person gets married, it may be considered marital property. A co-owner can potentially buy out the former spouse, If both individuals want to remain involved in the business, they may potentially be able to put aside their differences and continue to run the business together. If this does not work, selling the business and splitting the profits may ultimately be an appropriate solution.

Going through a divorce can be difficult, especially if the couple has a dispute over a business that they started together while married. If the other person no longer wants to be involved in the business, a family law attorney may negotiate to buy out the other party so that the business can stay intact. If this is the case, the attorney can prepare a property division settlement agreement that reflects the treatment of this particular asset.