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Business owners’ concerns during divorce

On Behalf of | Mar 25, 2020 | Family Law |

New York business owners may have particular concerns when they decide to divorce. People with family businesses or other closely held private companies may find that their company is one of the most valuable marital assets to be divided in the divorce settlement. This can pose challenges for some couples. On the other hand, a successful business can also serve as the basis for a positive outcome for both parties after the end of a marriage. There are several things that people can keep in mind in order to move towards a mutually acceptable settlement.

In many cases, spouses will want only one partner to remain active in the business, while the other spouse is bought out as part of the settlement. One spouse will transfer their interest in the company to the other in exchange for cash or other items, such as retirement funds or the family home. People may also want to consider the legal obligations of the business. The partner leaving the business might receive a release of all claims related to it, while the one receiving it would want to verify that they received all intellectual property and other assets.

In some cases, there may not be enough cash outside the business to buy out the other spouse in the divorce settlement. Here, the parties might negotiate an agreement that allows the recipient to pay off the other party over a period of time, reducing equity along the way.

When business owners go through a divorce, they may be especially concerned with protecting the future of their companies. A family law attorney may represent a client to reach a settlement on property division and other matters.