Marriage dissolution is an emotionally and legally difficult process in any case, and it can be even more complex if you or your spouse own interest in a company. If you are considering a divorce, it is a good idea to consult an experienced attorney on what steps to take in preparation.
The best way to protect your finances after a divorce is to make sure that there is a full and fair disposition of the business before you divorce your business partner. Speak with a lawyer at Yates & Wheland about protecting business assets in a Chattanooga divorce. Our proactive legal team can help you secure your financial future in this difficult time.
Before a divorce, it is crucial to have solid formation and management documents that can help protect your business assets during the marriage dissolution process. For instance, an LLC owner may benefit from a membership agreement that outlines how decisions are made, who owns how much of the company, and what will happen if an owner cannot exercise their ownership interest.
Properly drafted documents are key for any business, whether it be an LLC, corporation, or partnership. Working with a Chattanooga lawyer on clearly defined documents before the divorce can help a business owner protect their company.
Say that a company has an operating agreement and there are three or four members in the LLC. The members can execute a buy-sell agreement that defines terms for various scenarios, such as:
It is critical to lay out these details beforehand with help from a skilled local attorney, as a clearly defined buy-sell agreement can be used as a protective measure in the event of a divorce. This document makes it clear to the court what the owners of the company intended to do, making it easier for the court to decide what happens to a couple’s assets.
When properly executed by a lawyer at our Chattanooga office, prenuptial agreements are a great way of protecting a business during divorce. These documents can define separate property from marital property, thus simplifying the division process for divorcing business owners. Before entering a marriage, a person with shares in a company should discuss how a prenuptial can protect their interests with an attorney.
When setting up the structure and organization of a company, you should work with a good attorney who can help draft documents that define the roles of you and your spouse. It is best to deal with ownership interests before things become contentious, and a clearly written legal document can prevent damage to your business if your marriage does not work out. For more information on protecting business assets in a Chattanooga divorce, reach out to our firm today.