• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer
Call For A Free Consultation651-686-8800
  • Firm Overview
    • Articles
    • Settlements & Verdicts
    • Video Center
  • Attorneys
    • Jeffrey S. Sheridan
    • DeAnne L. Dulas
    • Andrew T. Hunstad
    • Randall A. Kins
  • Practice Areas
    • Criminal Defense
    • Aggressive DWI Defense
    • Aviation Lawyers
    • Family Law
    • Estate Planning & Litigation
    • LGBT Rights and Family Issues
    • Business Law And Litigation
      • Real Estate Law
      • Small Business Law
    • Federal Workers’ Compensation
    • Other Areas Of Law
  • Blog
  • Contact

Understanding Challenges When Divorcing A Business Partner

November 9, 2016 by Sheridan & Dulas, P.A.

Going through a divorce is usually difficult. Going through a divorce when your spouse is also your business partner is usually even more difficult. Any time assets are shared by a couple, they will have to be considered and probably divided if the couple decides to dissolve their marriage. This complicates the process and it particularly complicates it when those assets constitute their livelihoods. Fortunately, there are some steps you can take that may prevent a divorce from permanently damaging your business.

Prenuptial Agreement

This is a difficult thing for most couples to consider as they go about the beginning of their marriage. As a result, many couples are forced to deal with additional issues that are stressful and time consuming as they work to finalize their divorce.

Even if you decide that you do not want a prenuptial agreement, you can draft a separate document outlining the separation of assets relating to your business. This prevents you from having to potentially dispute asset separation down the line. When considering documents like these, your foremost concern should be the survival of the business. If everything else is formed around that, one of the largest issues is already taken care of and it may serve to remove or focus additional concerns.

Work with your partner

If a divorce is not amiable, this may be a difficult task, but working together and focusing on shared interests will save both parties much time and expense. The longer the divorce proceedings go on, the more they are likely to cost. Working with your partner to quickly reach a conclusion will make things easier for everyone.

You will also have to hire a business-valuation firm. These can be costly and some people will want to insist that the firm of their choosing is given the task, but deciding on a neutral third-party firm will provide both parties with peace of mind and will save considerable expense.

Avoid splitting the business

Businesses with two equal partners who are unable to work well together toward a common goal of business development usually doom their business to failure. Instead of splitting the business down the middle, try to give control of the business to one party or the other. The party who does not get control of the business can be compensated with other assets of equal value.

If you do end up in the situation wherein you need to divorce your business partner, you will want to ensure that you have a knowledgeable, experienced legal professional who is working with your best interest in mind. Their expertise and support will greatly improve the quality of the outcome.

Categories: Property Division Tags: Family Law, Prenuptial Agreements

Primary Sidebar

Practice Areas

  • Criminal Defense
  • Aggressive DWI Defense
  • Family Law
  • Estate Planning & Litigation
  • LGBT Rights and Family Issues
  • Aviation Law
  • Federal Workers’ Compensation
  • Business Law And Litigation
    • Small Business Law
    • Real Estate Law
  • Other Areas Of Law

Contact the Firm

    Footer

    Schedule a Consultation

    Sheridan & Dulas, P.A. logo Sheridan & Dulas, P.A.

    1380 Corporate Center Curve #320
    Eagan, MN 55121

    Tel: 651-686-8800
    Driving Directions

    Hours

    Mon-Fri: 8:30 am – 5:00 pm

    Schedule a Consultation

    Practice Areas

    • Criminal Defense
    • Aggressive DWI Defense
    • Family Law
    • Estate Planning & Litigation
    • LGBT Rights and Family Issues
    • Aviation Law
    • Federal Workers’ Compensation
    • Business Law And Litigation
      • Small Business Law
      • Real Estate Law
    • Other Areas Of Law
    The information contained in this website is provided for informational purposes only, and should not be construed as legal advice on any matter. The transmission and receipt of information contained on this website, in whole or in part, or communication with the Sheridan & Dulas, P.A. via the Internet or e-mail through this website does not constitute or create a lawyer-client relationship between this firm and any recipient. You should not send any confidential information in response to this webpage. Such responses will not create a lawyer-client relationship, and whatever you disclose will not be privileged or confidential unless this firm has agreed to act as your legal counsel and you have executed a written engagement agreement with Sheridan & Dulas, P.A.. | Copyright © 2021 | All rights reserved | Disclaimer | Privacy Policy | Sitemap