What to Consider in a Business Divorce as Relayed by Utah Business Attorneys Howard Lewis & Petersen
Is It Possible for a Business Owner to Protect His or Her Interests in a Divorce?
Yes, it is legally possible, but it takes some planning ahead. The best way is to have a prenuptial agreement before actually marrying. Ideally, you ought to obtain the best lawyer prior to getting married and have him or her write it up. They will know how to structure it so your business is protected. There are suitable business lawyers in Provo UT and everywhere else that can handle this.
Another area to address in your prenuptial agreement is what will happen if the children are either involved in the business or stand to inherit it later. If there is an age-requirement for them, who retains control of the business until the children reach that age? Not only does a legal agreement protect the business, but your offspring as well.
What If I Did Not Do That?
If you are already facing divorce and never had a prenuptial agreement, be prepared to duke it out with your spouse in court. The exception to that would be if it is a relatively amicable divorce that does not need a court battle. You will still need a good lawyer in either case. If you don’t have one, we suggest you obtain one and fast! Provo business attorneys are available now.
Types of Business Divorces
Basically, there are three alternatives for addressing a business in a divorce. They are:
- Remaining co-owners
- Selling the business
- Buyout of the other person by a spouse
Of course, depending upon the status of your divorce and legal documentation, how smoothly the process goes will determine what steps to take. Your Utah business lawyers are instrumental in affecting how well the divorce proceedings go. If at all possible, it is better to settle outside of a courtroom. Otherwise, any of the business attorneys in Provo UT or elsewhere can tackle this for you.
Is Your Spouse Legally Entitled to Your Business?
According to Howard Lewis & Petersen, proven Utah business attorneys, it all depends upon what took place during the marriage. Was your spouse part of the paid staff members? How much did he or she contribute to the company? Was there any sort of written agreement about who gets what in the event of a divorce? These are some factors that determine the legality of the situation. In many instances, the answer is yes, they are entitled to at least part of your business.
What Happens If it Is a Family Business?
The primary question here is, are the legal expectations still the same if the business in dispute is family-owned? The answer largely depends on at what point, before or during the marriage, this business was established. If the business was launched and became successful after you and your spouse were married, then they are likely entitled to at least a portion of it.
One thing is certain, say knowledgeable Provo business lawyers, things get more complicated legally when the company is family-owned. Another factor may be if the offspring are designated as current or future owners. Which spouse retains control in that case? Once again, law firms such as Howard Lewis & Petersen must be involved in helping to sort things out.
Final Thoughts
A business can survive even if there is a divorce somewhere along the way. To have the best shot at coming out on top in the deal, have a good lawyer available from the very beginning.
