When San Diego high asset divorce cases arise, they often involve one spouse having an ownership interest in a business that in part defines the value of the marital estate.  Unfortunately, a lack of proper planning could lead to an ex-spouse suddenly becoming a partner in the business that the other spouse owned while the two parties were married.  However, there are steps that can be taken that would help to prevent this possibility and to protect the interests of the other owners of the business and the company’s employees.

One potential protective step involves the execution of a buy-sell agreement.  Buy-sell agreements are executed among the owners of the company at issue when a business starts.  However, these agreements can also be executed after a business is already running, and completing a buy-sell agreement can help to govern the steps that are taken in the event that one of the owners encounters a divorce.

Specifically, buy-sell agreements can help to set a contingency plan for the owner who encounters a divorce, including the setting in motion of a plan to raise the necessary capital to buy out the ex-spouse so that he or she does not suddenly become a partner in the business.  Other terms could be agreed upon that prevent a voting interest from being granted to the ‘new’ co-owner of the business.

San Diego High Asset Divorce Lawyers

Clearly, the specific tenets of a buy-sell agreement will go a long way towards the result of what will occur with the ownership structure of that business should a divorce case arise.  Therefore, people who own a business and who are married should take those necessary steps as soon as possible to prevent those unwanted situations from arising.