Divorcing While Owning a Business? What You Should Know
Many people in the United States have to go through divorce proceedings every year, and some of the most complicated divorces are the ones in which spouses are co-owners of a small business. The division of a closely held family business can be a very contentious issue that is quite difficult for some spouses to resolve on their own to either party’s satisfaction.
If you are preparing for a divorce in the Sarasota area and you own a business, then you should get yourself a highly rated Sarasota divorce lawyer at the Law Offices of Matthew Z. Martell, P.A..You will want to make sure you have one of the best divorce attorneys in Sarasota if you and your spouse both own a business and are getting divorced.
Keep in mind that a divorce can often hinge on what is considered marital property and what is considered separate non-marital property. One spouse may have a more significant ownership claim when they started the business before getting married. Business ownership issues can become complicated when separate non-marital business property becomes commingled with marital assets or property during the divorce.
One of the most effective ways to legally handle a business which is solely owned and run by only one spouse is through prenuptial or postnuptial agreements. The former is signed before a couple is married while the latter is executed after the spouses have already married.
Partnership, shareholder, or operating agreements can all be used to possibly lock a spouse out of business and protect the interests of other business owners in the event that a couple gets divorces. You can also help protect your business in a divorce by paying yourself a reasonable salary which can help avoid a spouse claiming that they are otherwise entitled to a greater share of the business.
In some cases, one spouse is bought out of the business and paid off over a longer period of time. But many spouses end up selling businesses and splitting the assets and profits. When you need help with the division or sale of a business in connection to a divorce, do not hesitate to contact a Sarasota divorce lawyer at the Law Offices of Matthew Z. Martell, P.A. Our highly reviewed divorce attorney in Sarasota will be able to help you achieve the most favorable possible outcome to your case.