When business owners in Ohio decide to divorce, they may face specific considerations related to their businesses. While divorce can have a major financial impact on people in a variety of positions, business owners of closely held private companies can face additional repercussions that can make it difficult or impossible to conduct business in the same way as in the past. As a result, many people may want to plan for how a company will be dealt with in a divorce. While people are often uncomfortable with prenuptial agreements, a private business may make them a necessity.
Many investors or venture capitalists will insist on business owners and partners having prenuptial agreements or postnuptial contracts that address the division of the business in case of divorce. This kind of prenuptial agreement could include a recognition of the business as one partner’s separate property. In order for a prenup to be valid, it is important that each spouse is represented by his or her own attorney advocating for their interests. This means that the spouse’s contribution to the business after marriage may be recognized as marital property or may be given a specific valuation as a percentage of the business. In addition, the agreement may specify that any distribution is to take place in cash rather than through the division of the company.
In other cases, spouses are partners in the business, but a divorce may affect their interaction and harmonious operation. A prenup or postnuptial agreement may spell out exactly how one spouse can buy out the other, including which spouse can exercise this right.
Entrepreneurs have specific concerns when it comes to ending a marriage. A family law attorney may advise a divorcing spouse and work to achieve a fair settlement on a range of issues, including property division and spousal support.