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The need for divorcees to protect their business interests

On Behalf of | Oct 12, 2020 | Family Law |

A wedding is great for reminding people in Kentucky, especially the two people getting married, of how wonderful love and romance can be. However, it is a good thing for newly married individuals to not allow the blissful moment to interfere with thoughts of practicality. This point is especially relevant to business owners who are getting married.

Most newlyweds enter into a marriage with the thought they will spend a lifetime with their new spouse. But it is much better to be safe than sorry when you enter a marriage after spending years planning and building a company. A family law expert provides the following examples to demonstrate why business owners should take action to protect their companies.

The first scenario includes a nonowner spouse who wins a considerable share of stock in the divorce. If that individual has no interest in owning the stock, he or she may sell them off quickly. This action could initiate a chain of events that causes the value of the shares to plummet.

A second scenario to consider is one in which a spouse was already acting as a team member or owned shares in the company. The business owner who has no plan in place for buying out his or her ex may regret the decision not to prepare for this scenario.

A prenuptial agreement will allow people to determine how their businesses will be handed in the event of divorce long before there is evidence their marriages are failing. A postnuptial agreement is just as the name suggests and allows for similar protections to go into effect after the marriage has taken place.

The divorce process for business owners can sometimes become a little more complicated than it is for other people. Individuals with questions regarding the divorce process may find the answers they need by consulting with a divorce attorney.