Divorce can be a complicated financial matter as well as an emotional issue. This can be especially true for small and medium-sized owners of privately-held Kentucky companies. These types of businesses are often the largest marital asset at stake in the divorce, and if the division is not handled properly, it could have a serious negative effect on the longevity of the business. Many business owners want to make sure that their companies do not have to be sold in order to settle the divorce and want to prepare themselves to move forward successfully.
Business owners may negotiate a mutually acceptable property division settlement that keeps the company in good stead during the divorce. In many cases, the settlement will involve one spouse turning over their interest in the company to the other spouse in exchange for financial compensation. In some cases, that spouse may receive a greater share of other property, such as the marital home or an investment account, in exchange for their portion of the business. At the same time that the financial matters are handled, it is equally important to make sure that documents are executed to release that spouse from business legal obligations and ensure that all intellectual property is transferred.
In some cases, there may not be enough other assets to buy out the other spouse from the company. In this case, both parties may negotiate a gradual payoff proposal along with a clear plan for decreasing the other spouse’s equity and role in the business during the process.
Business owners may face unique concerns when they decide to divorce, but many entrepreneurs emerge from their marriages with their businesses intact and on the road to success. A family law attorney may work to reach a fair settlement on property division and other key issues.
