Things To Consider When Divorcing With A Family Business
Getting a divorce is made even more complicated in Dallas-Fort Worth when a family business is involved. You must know your rights and legal options so that you don’t lose the value of that business. Below are a few things that you must consider.
Should you work together?
Some couples are tempted to keep working together after the divorce. Neither one wants to sell the business, so they decide to be business partners instead.
While there are stories of this working, the reality is that most businesses get torn apart by such a situation. When the two owners are not on the same page or are even angry with one another, decisions are made based on emotion, rather than on what is best for the business. This could cause the business to fail and be worth nothing, whereas selling it and splitting the money in the first place would have been more valuable.
What is the value of the business?
If you do decide to sell, the natural first step is to have a valuation done. It’s best to do this with an outside party who is in no way connected to the business. Owners often think that a business is worth more than it is because they are emotionally invested. A real valuation will show you your options.
Consider a prenuptial agreement
If you’re not yet married and you already own a business, consider using a prenuptial agreement to protect that business. This way, even if your spouse works with you while you’re married, you don’t lose everything if you decide to split up.
Source: Setzer Law Firm, PLLC, “Keller-Area Attorney For Divorces Requiring Business Valuation,” accessed May. 22, 2015