In a perfect world, divorce wouldn’t need to happen. One can at least hope that most divorces can end amicably. Terminating a marriage is tough, especially if you have children. What if you own a business together? How do you handle operating a mutually owned business amidst a divorce?
Hopefully, when the business was incorporated, some sort of exit strategy was put in place, such as a shotgun clause. A shotgun clause is a buy-sell agreement where one partner can make an offer to sell their shares of the company to the opposing partner for a particular amount. The opposing partner can then decide whether they will accept the offer. If they do not, they must be willing to sell their own shares to their partner for that originally offered price.
Turn to us for advice on how to address a business you run with your soon-to-be ex-spouse.
If an exit strategy was not put in place, there are other methods to use in the approach towards managing a family business during a divorce. If the divorce was amicable, the couple could choose to continue managing the business together. They could even choose to both stay a part of the business but work apart from each other, perhaps in different departments that don’t necessarily need to interact consistently.
More likely than not one or both partners will choose to leave the business. This is where having an attorney specialized in this type of case is imperative. The last thing that needs to happen is litigating over not only divorce but a business. Much like with children in a divorce, whatever decision is made regarding the business, needs to be in the best interest of the business and its continued growth.
If you are seeking counsel for handling your family business amidst a divorce, contact the Orlando divorce law attorneys of Veliz Katz Law for a consultation.