“Effective April 10, 2023, we are pleased to welcome Attorney Carol Weinstein Boileau Esq. , as Of Counsel to the Firm.”

When Marriage And Business Intertwine

On Behalf of | Dec 8, 2023 | Divorce |

Couples mixing business with marriage is a dicey proposition. Some spouses are able to make the dual dynamic work. Other couples, whether one or both are actively involved in operations, the countless hours together at home and work reach a breaking point where divorce is the only option.

Marital dissolutions occur for various reasons. However, the complexities can lengthen the process when property division involves a successful and growing enterprise.

Dual Disruptions

Divorce is a significant disruption when it comes to business operations. The time between the split and the final dissolution creates uncertainty for couples and family members involved in the operational processes. Those who have built what could or should have been a lasting legacy are left with uncertainty and sadness. They face a potentially significant uncoupling.

When looking into a business as part of marital property, the spouse or spouses who own and ran the company must have played a significant time building the enterprise. The first years of a business may see limited income and assets that could be subject to distribution.

Proactive Measures

Prenuptial agreements represent proactive measures for couples who pursue that legal route. Regardless of the value of any assets, putting pen to paper to clarify who gets what, even if it is a six to seven-figure business, is paramount. The importance of a prenup can reduce the numerous complexities.

In the end, distribution would involve the value of the business from the marriage ceremony and the actual date of the divorce. That could take various forms, including percentage of value or fixed-dollar payment.

Divorce has many casualties beyond the human factor. The demise of a thriving business can be equally devastating for a once united couple.