How do you handle a family business during a divorce? Can you keep the business running while ownership and associated property division issues are resolved?
Kentucky business owners who get divorced could face crucial issues regarding the viability and division of a family owned company or business. This is why it is so important to consider a prenuptial agreement to put protections in place for an existing business prior to tying the knot.
What happens to a business started and operated by a divorcing couple or their extended family?
There are several steps in this process. The first is establishing an accurate valuation for the business itself. The next step is to identify the portion of the valuation which belongs to each of the divorcing spouses. The next decision usually relates to the future of the business itself. Will one of the former spouses take primary control and buy out the interest of the other party? Are the parties able to set aside their personal differences and work together to continue existing business operations? Will the business be sold and the proceeds divided according to each party’s established interest?
These are challenging questions which require the sound advice and counsel of our experienced divorce and family law attorneys.
Protecting a family business from divorce might not necessarily apply to the couple that started it. If a business owner is planning to pass on the family business to the next generation, they may want to take extra care to protect the company in case their child gets a divorce. Passing the company down in a trust can prevent the business from being divided in divorce proceedings.
Deciding how to handle a family business during a divorce will almost always be a complex process. If you are concerned about your interest in a family run business or professional practice we invite you to contact the experienced divorce and family law attorneys at Dodd & Dodd or call 502-584-1108 to schedule an appointment and learn more about the specifics in your unique cases.
