When most people decide to form a partnership, they don’t stop to ask their prospective business partner about the stability of their marriage, but maybe they should. Divorce is a factor that can put your company’s valuation on the line and change who owns it. These are just some of the many reasons why it’s critical to consult with a business litigation attorney if you or your business partner are divorcing.
Paperwork to review when you and your business partner’s divorce is pending
If your business partner is getting divorced, then hopefully, they have a prenuptial agreement in place. If this didn’t occur, then maybe you two amended your partnership agreement before the wedding occurred or drafted a contingency one. It should detail what each of you would want to happen if a family dispute such as this arose. You’ll want to gather these if you or your business partner face divorce. These could affect how things turn out.
What you can expect if your business partner is facing a divorce
One of the first things that you can expect soon after a spouse serves you or your business partner with divorce papers is for their attorney to want to do a business valuation. They’ll want to assess your company’s assets and liabilities to see what your business is worth.
You’ll want to go ahead and start pulling financial records for your company. If some are confidential or that are more relevant to you than they are to your divorcing business partner, then you may want to flag them as such. You may need to justify the withholding of those documents if a family law judge asks your business partner to turn some over.
Protecting your business interests amidst an impending divorce
A divorce can be scary on multiple levels, especially if your business partner finds oneself needing to sell off their interests in the California company to their ex. You may not only find yourself sharing ownership of your business with someone other than who you initially chose to work with but also losing a significant financial stake in it depending on how financial discussions go. A business litigation attorney can help you protect your interests when your business partners’ family life is in flux.