Divorce and Small Business
Of all the difficult questions that can arise in terms of property division during a divorce, the issue of a small business can be especially problematic. If both individuals involved have had a hand in the ownership or management of the business, they may each feel deeply entitled to it. It may even be necessary to sell the business simply in order to divide its assets to the satisfaction of the court.
The Prenuptial Issues
Some soon-to-be spouses in a business relationship agree to prenuptial terms that outline the division of the property in question. These documents include a full disclosure of any assets (what each person owns) and liabilities (what they owe). Following the points below can help ensure a solid basis for a business partnership of this kind:
- Keep it fair – In the event of a divorce, courts are likely to strike down any signed documents that come across as especially unfair in favoring one spouse over another. This is especially important to keep in mind considering that the two people can draft their own agreements without outside assistance.
- Clause it up – the documents should include provisions stating that the laws of the state in which the document is drafted take precedence in the event of a move. Different states have different standard ways of dealing with the division of property. As a community property state, California decrees that all property should be evenly divided up between the two individuals involved, regardless of duration of marriage, number of children, etc.
- Hire a lawyer – each person should hire his or her own legal representative to ensure the terms of the agreement are fair and to make sure that they comply with state laws.
Contact Us
If you are planning on getting married or are facing divorce and are in a business relationship with your partner, call the experienced team of San Jose divorce lawyers at the offices of Daniel Jensen, P.C. today at 408-296-4100.
