If you are in the middle of a divorce and you are worried about how the divorce settlement business ownership process will work, a buy sell agreement can be your best bet. A buy sell agreement divorce allows you and your spouse who own a business together to enjoy a smooth transfer of ownership of the business from one spouse to another.
If you have found yourself in the situation where you are getting divorced and want to protect your business, a skilled New Jersey divorce lawyer can help you to do just that.
How Does a Buy Sell Agreement Divorce Work?
When a buy sell agreement has been created correctly, you will be able to provide the right clarity for divorce company assets as well as how payments, earnings, and residuals will be handled during and after the divorce. Funding and sales of the business can be outlined in this document, as can valuation formulas, legal changes to the business, shareholder alterations, and more.
Each business is unique, and each buy sell agreement divorce is unique. This is why having a skilled lawyer looking over the process is so critical. These agreements need to hold up in court, and they need to be stated so clearly that there is no confusion about the intentions of the agreement later.
Should I Have a Buy Sell Agreement Divorce for my New Jersey Business in Place at all Times?
Divorce and your business can be really complicated without having a buy sell agreement in place. You might not think that you and your spouse will ever break up, but if you do, it can lead to major inconvenience, as well as issues with the stability of your business when you divorce. If you have a buy sell agreement divorce stipulation in place, the process of breaking apart your interests in the company will likely not upset the daily operations that need to go on for the business to survive.
While you might not need to have a buy sell agreement divorce clause for a very small business that does not earn much money, you will need to be cautious about any company that is generating income without one. Divorces can lead to surprising complications related to assets, and many people who are business owners are very surprised at how complex it can be to separate these assets during a divorce.
What Does the Buy Sell Agreement Do?
During a divorce, the buy sell agreement is reviewed and used as the guide for how to handle both parties’ interests in the business. These documents will lay out who is bought out and for how much. The agreement will also outline how long this process should take and any alterations to the business that must take place to satisfy the agreement.
Having a buy sell agreement in place makes it very simple to handle this part of the divorce, and discussions about the business are much less contentious with a buy sell agreement in place. This agreement can save you and your business from being impacted financially during the divorce process.
Securing a Skilled Divorce Lawyer is Important
When you have a business that needs to be split up related to a divorce, you need to secure a skilled divorce lawyer to help you with this process. Having a buy sell agreement in place will make the job of your lawyer much easier, but there will still be questions that need to be answered and decisions that need to be made that are best handled with the help of an attorney. Business ownership and buyout can be complicated without the divorce process involved. Once a divorce is in play, you will want to protect your business from being impacted by the divorce proceedings.
Contact us at DeTorres & DeGeorge today, and we can help you formulate a buy sell agreement divorce document that will protect your business during a divorce. If you are in the middle of a divorce in Florham Park or Clinton NJ, our skilled team can help you navigate the process of splitting up business interests with ease.