On behalf of Kathryn Wayne-Spindler & Associates, PC posted in Property Division on Wednesday, February 11, 2015.
Starting a business with a spouse in Michigan is often a thrilling experience, but when two co-business owners get divorced, conflict often arises. Husbands and wives in America jointly own nearly four million businesses. The certain roles that spouses have in a business may determine what action they must take regarding property division when splitting up.
If one of the spouses is a doctor or a dentist, and the second person is an office manager there, the manager position can easily be outsourced. Thus, this business may survive even after divorce; the medical provider can simply buy the other spouse out. However, if both spouses are medical providers who run the practice jointly, the company will most likely need to be divided.
Just as two people who are about to get married may choose to sign a prenup agreement, creating a comprehensive “business prenup agreement” is wise for co-business owners who are getting married. This agreement helps to protect both parties’ individual interests. After all, running a business with an ex-spouse following a divorce is typically not considered a viable option.
Property division is often a sticking point for couples who are going through divorce. This is especially true for those who own businesses together, as a family business is a huge asset and is often the main source of income for both parties. An applied knowledge of Michigan divorce laws may help individuals to seek the settlement they desire when splitting a business or other major asset.
Source: cbsnews.com, “Who holds onto the family business when couples divorce?“, S.Z. Berg, Feb. 10, 2015