In an earlier post, this blog explained that prenuptial and postnuptial agreements are two ways in which business assets can be protected. Both of these agreements outline the various aspects of asset division in the event that a marriage falls apart in Tennessee or anywhere else in the country.
In this post, we will discuss how comingled assets are the most affected in a divorce. A business can suffer financially if family disputes start to occur. Property division can also be troublesome in the event of the death of a spouse, disability of a partner or legal incapability. In that case, a competency hearing may have to occur for the benefit of the partner who is not capable of handling the business assets.
There should be a clear separation between personal and business assets. A wise approach may be to split up the various aspects of business, such as eliminating accounts, stock and real estate from personal assets. The clear delineation protects the family from business crises.
It is also a good idea for the couple to make a buy-sell agreement. That agreement will help to establish a value for a property, create market for stock that is closely held and ensure that the business is functioning smoothly. A buy-sell agreement establishes the value of a property so that disputes can be avoided.
The buy-sell agreement can also determine if any person has the right to buy a property if the property owners are divorced. Whatever the case may be, a spouse should acknowledge that the person has knowledge of the business in the buy-sell deed. These can be quite complicated matters so it may be wise to speak with a Tennessee attorney about property division matters.
Source: Forbes, Business And Marriage Do Not Go Together Like A Horse And Carriage, Steve Parrish, Aug 17, 2015