There is already a great deal at stake when people finally come to the decision to file for divorce. Relationships with their kids and other family members might change. Maybe the family will have to give up the family home.
There is even more at stake when a couple's property division involves a family business. Not only is a divorce the end of the marriage in these family law cases, but a divorce could also mean the end of a business if not handled strategically.
Minnesota is an equitable distribution state. In a situation where a family business took shape during the marriage, property division laws would apply. What if, however, divorcing parties do not want to change their business relationship and business setup? They want to work together in a professional capacity and preserve the family business.
Entrepreneur shares a list of tips that a divorced duo shares after going through a divorce while continuing to own a business together. The once-married, now-professional duo basically insists that those who want to protect their businesses from a divorce should do the following:
Work with legal representation as soon as possible and sort through emotions versus reason in regards to the future of the family business. A collaborative divorce process can be good for this, particularly if both parties and their lawyers agree that the goal for the business following divorce is shared between them.
Avoiding trial through collaboration is a way to save money in a divorce. For those whose priorities in their divorce includes protecting a business, protecting their pennies is likely a priority, too.
A collaborative divorce isn't for all. Saving money might not outweigh the importance of protecting the well-being of their business' future. We will continue this conversation about divorce and family business in our next blog post.
Source: Entrepreneur, "If You Run a Company Together, What Happens When You Divorce?" Kate Taylor, Feb. 25, 2014
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