When Business Partners Divorce – Future Finances
When Business Partners Divorce – Future Finances
In much the same way that each marriage is unique, so is each business partnership, and when you blend the two together, it can create many challenging issues. However, if a couple in business together divorces, there are special considerations that can either have a detrimental effect for the business or, if handled carefully, can allow the company to continue – assuming one or both partners wants to continue in a professional capacity.
“The most important decision among married business partners seeking a divorce is whether or not the business will continue to operate and exist. If the business is to continue and the parties still want to remain partners, it becomes a matter of defining each person’s role going forward. But if one or both spouses no longer wants to be a business partner with the other person, then the business assets will need to be assessed and divided in a similar way as with combined marital assets,” said Norman A. Green, Senior Partner at Green and Metcalf P.A. of Vero Beach, FL. “If one party wants to retain the business, then the spouse leaving the business may be compensated with other assets through the Court’s equitable distribution determination.”
If a business is to continue after the owners are divorced, it’s recommended that business assets are kept separate from the couple’s personal accounts. By doing this, all business accounting can remain solely within the business itself, without any personal transactions occurring that may create questions from either spouse or prove to be problematic in the eyes of the law. The maintenance of company finances as separate from personal assets is always a smart financial decision, regardless of divorce.
“Divorce can be complicated, and divorces between spouses who are also business partners can present a unique set of challenges outside the norm. This is why I always encourage seeking the advice of knowledgeable divorce attorneys in your area, who can advise clients on the best options for any individual situation,” Green said.
Norman A. Green is the founder and a partner of Green & Metcalf - Attorneys At Law. He has over 40 years of experience in the practice fields of criminal defense and family law (divorce, child custody, child support, paternity, modifications of existing orders, prenuptial agreements and alimony cases).
