PRESS-NEWS.org - Press Release Distribution
FREE PRESS RELEASES DISTRIBUTION

How To Protect A Business From The Fallout Of Divorce

If a spouse has contributed to your business, he or she may be entitled to a portion of the business in the event of a divorce. Certain protections can prevent this from happening.

2013-01-31
January 31, 2013 (Press-News.org) How to protect a business from the fallout of divorce

Marriage and business often go hand-in-hand. Frequently in this economy, one spouse or both spouses may own their own business or both spouses may even own a business together. The creation of a successful business requires a lot time and hard work and is likely to be the most important financial asset in a marriage. Unfortunately, more than half of first marriages in the United States end in divorce as do the majority of second and third marriages. Therefore, divorce and business also go hand-in-hand, and business owners should be properly protected when going through divorce.

If a spouse helps run a company, contributes ideas to the business, or is even employed by the business during the marriage, he or she may be entitled to a portion of the business. In short, the more a spouse is involved with the business, the larger the piece may be. There are a range of tools that can help protect a business owner's assets from property division in a divorce. Some tools like prenuptial and postnuptial agreements apply to the marriage and other safeguards, such as a buy/sell agreement, are incorporated by the business.

Protections that Apply to the Marriage

A well-crafted prenuptial agreement can govern the division of assets in divorce. It is an enforceable contract signed by both parties before marriage that outlines what property will be considered separate, what property will be considered marital property, and how the marital property should be divided in the event of a divorce. Without one, divorcing couples are left to the property division rules of Florida, which require that marital property is equitably not equally divided. While a prenup may not always be enforceable, it is more likely to be enforceable when
-Both parties are represented by attorneys
-The agreement is in writing
-There is full disclosure of assets
-The agreement is not unconscionable
-It is executed voluntarily and without coercion

If a prenup is not an option, a postnuptial agreement may be. A postnuptial agreement functions just like a prenuptial agreement except that it is signed after the marriage. A valid postnuptial agreement must meet the same requirements of a valid prenup.

Protections that Apply to the Business

There are a number of ways a business owner can protect her or his interest in the business and the interests of the other owners of the business. Partnership, shareholder and operating agreements may include provisions that can protect the interests of the other owners if one of the owners goes through divorce. For example, an operating agreement may include a prohibition against the transfer of shares without the approval of the other partners or shareholders and the right of partners and shareholders to purchase the shares or interest of one or both divorcing parties so that the control and ownership of the other owners is not diluted.

Another strategy to protect the business from divorce concerns salary or pay. Frequently, business owners pay themselves small salaries in order to reinvest the amount that would have been paid as salary back into the business. However, in the context of divorce a soon to be ex-spouse may claim he or she is entitled to more money or a larger share of the business because potential earnings went back into the business rather than the household. Therefore a business owner should pay her- or himself a reasonable salary to avoid such a claim.

As mentioned above, the more a spouse helps or contributes to the business, the more he or she may be entitled to a percentage of the business in the event of divorce. To avoid that risk, think about whether a spouse should participate in the business at all.

Finally, if the business owner is not able to properly protect the business and a former spouse is entitled to an ownership interest there are a number of ways to settle the issue if the former spouse will no longer be a business partner post-divorce. The business owner may use a property settlement note, which is a long-term payout in the amount of the ex-spouse's share of the business. Another option is the business owner may use his or her share of marital assets, such as real estate, cash, or retirement funds, to settle the interest. The most extreme and most disruptive method to settle an ex-spouse's interest in the business is to sell the business and divide the profit.

If you own a business and are considering divorce in Florida, contact an experienced divorce attorney to discuss the best strategy for your situation.

Article provided by Alan R. Burton
Visit us at http://www.alanburtonlaw.com


ELSE PRESS RELEASES FROM THIS DATE:

Understanding The Divorce Process In Florida

2013-01-31
Understanding the divorce process in Florida Each state has its own rules for divorce, and as a result there are a lot of myths about the requirements of filing a divorce. The state of Florida no longer requires fault as a ground for divorce, and therefore the only requirement for a Florida resident to dissolve his or her marriage is to prove the marriage is "irretrievably broken." In Florida the official term for divorce is "dissolution of marriage," and either spouse may file for dissolution. While Florida is a no-fault state for the purposes ...

If You Need Disability Benefits, You May Be In For A Long Wait

2013-01-31
If you need disability benefits, you may be in for a long wait The stress of living with a disability can be overwhelming, but the added stress of dealing with the system to collect Social Security Disability payments can make it even worse. A backlog of cases has significantly increased the amount of time that applicants have to wait to get their benefits approved. Recent reports indicate that applications for Social Security retirement and disability benefits have skyrocketed in recent years. This is likely due to the growing number of baby boomers who are reaching ...

The Division Of A Military Pension In A Divorce

2013-01-31
The division of a military pension in a divorce A married couple with one or both spouses serving in the military can experience special challenges. There are often children involved, and one spouse may have to postpone or forgo education or employment to care for the children full-time while the other spouse is deployed. In addition, frequent moves and the stress of serving in the military can strain even the strongest relationships. In fact, statistics from the Department of Defense show there were almost 30,000 military divorces in 2011, which is the highest rate ...

Federal Regulators Target Debt Collection Companies With Aggressive Tactics

2013-01-31
Federal regulators target debt collection companies with aggressive tactics Harassing phone calls and threats of arrest are practices currently being used by aggressive debt collectors. Many of these tactics are not only rude, but illegal. In an effort to refresh current laws and remind debt collection agencies that creditor harassment will not be tolerated, the Consumer Financial Protection Bureau, or CFPB, is launching a new set of rules to ensure debt collectors are not violating the Fair Debt Collection Practices Act. The regulations are aimed at holding these ...

Recent Report Finds Older Americans Facing Increased Risk Of Foreclosure

2013-01-31
Recent report finds older Americans facing increased risk of foreclosure A new report by the AARP shows that older Americans are facing increased risks of foreclosure. The report, titled Nightmare on Main Street: Older Americans and the Mortgage Market Crisis, was the first of its kind to focus on how the recent difficulties of the housing market is impacting people over the age of 50. The report found that over 600,000 loans for people in this age group were in the process of foreclosure as of December 2011. In addition, over 1.5 million seniors lost their homes ...

Property Division During Divorce

2013-01-31
Property division during divorce People getting a divorce often have concerns about property division. Many couples are able to reach a property division settlement outside of court, and the divorcing spouses sign a settlement agreement that is generally approved by a judge. However, if the parties cannot come to an agreement, a family court judge will decide how to divide the couple's property based on Massachusetts law and will order a property award. Equitable distribution Massachusetts is an equitable distribution state, as distinguished from community property ...

How Are Florida Parenting Plans Determined?

2013-01-31
How Are Florida Parenting Plans Determined? One of the most difficult issues when a relationship breaks down is deciding where a child or the children will live. In the process of working out a parenting plan, each parent will generally have less time with the children. This can be a difficult adjustment. Developing a parenting plan and time-sharing (formerly known as child custody and visitation) agreement needs to account for the children's best interests. The court uses the "best interests of the child" standard when reviewing any agreements or deciding ...

Driving Without A License Is No Joke In North Carolina

2013-01-31
Driving without a license is no joke in North Carolina In late 2012, 11-year-old Steven Dixon was hit by an unlicensed driver while walking to his bus stop in Forsyth County, North Carolina. "I was walking and I heard something go boom... [the car], it hit me and ran over my legs," said Steven. Both of his legs are now in casts. Unfortunately, unlicensed drivers are not uncommon in North Carolina. State Trooper Robert Reavis says he pulls over about one unlicensed driver a day, which is not far from estimates for the entire state. A recent AAA study revealed ...

A Comparison of Chapter 7 and Chapter 13 Bankruptcies

2013-01-31
A comparison of Chapter 7 and Chapter 13 bankruptcies With such a terrible economy, it is no surprise that many people are struggling financially. Unexpected events such as a job loss or sudden illness can cause even the most responsible people to fall behind on their bills. Many people struggling with mounting debt consider the possibility of filing bankruptcy. Whether bankruptcy is right for you will depend on your specific situation. Chapter 7 bankruptcy The most common types of bankruptcy filed by individuals are Chapter 7 bankruptcy and Chapter 13 bankruptcy. ...

Money Raised at Pet Expo to Impact 2,500 Students

2013-01-31
In an effort to promote pet responsibility at an early age, the Pet Care Trust, with the assistance of the World Pet Association and other pet-related businesses, raised over $8,000 for the Pets in the Classroom Grant Program during America's Family Pet Expo, held November 3-4 in Puyallup, Washington. The money raised will go directly to helping approximately 50 teachers enhance their classrooms and curriculum through the aid of classroom pets, impacting nearly 2,500 students. The World Pet Association, host of America's Family Pet Expo, donated booth space to the Pet ...

LAST 30 PRESS RELEASES:

Scientists model 'true prevalence' of COVID-19 throughout pandemic

New breakthrough to help immune systems in the fight against cancer

Through the thin-film glass, researchers spot a new liquid phase

Administering opioids to pregnant mice alters behavior and gene expression in offspring

Brain's 'memory center' needed to recognize image sequences but not single sights

Safety of second dose of mRNA COVID-19 vaccines after first-dose allergic reactions

Changes in disparities in access to care, health after Medicare eligibility

Use of high-risk medications among lonely older adults

65+ and lonely? Don't talk to your doctor about another prescription

Exosome formulation developed to deliver antibodies for choroidal neovascularization therapy

Second COVID-19 mRNA vaccine dose found safe following allergic reactions to first dose

Plant root-associated bacteria preferentially colonize their native host-plant roots

Rare inherited variants in previously unsuspected genes may confer significant risk for autism

International experts call for a unified public health response to NAFLD and NASH epidemic

International collaboration of scientists rewrite the rulebook of flowering plant genetics

Improving air quality reduces dementia risk, multiple studies suggest

Misplaced trust: When trust in science fosters pseudoscience

Two types of blood pressure meds prevent heart events equally, but side effects differ

New statement provides path to include ethnicity, ancestry, race in genomic research

Among effective antihypertensive drugs, less popular choice is slightly safer

Juicy past of favorite Okinawan fruit revealed

Anticipate a resurgence of respiratory viruses in young children

Anxiety, depression, burnout rising as college students prepare to return to campus

Goal-setting and positive parent-child relationships reduce risk of youth vaping

New research identifies cancer types with little survival improvements in adolescents and young adul

Oncotarget: Replication-stress sensitivity in breast cancer cells

Oncotarget: TERT and its binding protein: overexpression of GABPA/B in gliomas

Development of a novel technology to check body temperature with smartphone camera

The mechanics of puncture finally explained

Extreme heat, dry summers main cause of tree death in Colorado's subalpine forests

[Press-News.org] How To Protect A Business From The Fallout Of Divorce
If a spouse has contributed to your business, he or she may be entitled to a portion of the business in the event of a divorce. Certain protections can prevent this from happening.