Getting a divorce means going through various processes as one attempts to divide assets and finances that were shared with another. Deciding on a child custody arrangement, support and property division are some of the things that a divorcing spouse may have to consider. What happens to a family business in Pennsylvania when a couple chooses to get a divorce is something that may be overlooked. However, a prenuptial agreement could help prevent a dispute regarding this asset.
Millions of married couples jointly own businesses throughout the United States. Within these businesses, each spouse has a certain role, which may assist in determining what happens to the business during a divorce. If they participate in similar or equal roles, it is more likely that the business will have to be split between the parties.
In the case of a jointly owned business, a business prenuptial agreement can be made that provides for both parties in the case of a divorce. This allows for both partners to have finances to live on and provisions for retirement. In many cases, a buyout by the spouse interested in continuing in the business can be exchanged with other assets or payments.
Determining the future of a business in a prenuptial agreement can prevent complicated disputes later on. Numerous aspects have to be decided and split during the divorce process. Getting assistance with creating a prenuptial agreement or a pre-divorce agreement can ease the stress and tension that can come from dividing a shared business. Pennsylvania couples looking to split their joint business may want to look into the options available to them, in order to be better prepared.
Source: cbsnews.com, “Who holds onto the family business when couples divorce?”, S.Z. Berg, Feb. 10, 2015