Buyout clauses aid the divorce process for business owners

The prospect of negotiating a prenuptial agreement often causes romantic partners discomfort. If the estranged Pennsylvania couple runs a business together in Pennsylvania, then the importance of discussing the possibility of split becomes even more important because a divorce could force the sale of the company. Whether the founders of a company are romantically linked or simply good friends, the preparation of a buyout agreement could head off future problems if disputes erupt.

When buyout clauses are included in the documents that set up a business, the partners establish rules for separating from the company if a relationship turns unpleasant. Without these guidelines, the partners could be left negotiating the division of business assets during an acrimonious time.

When a former couple cannot agree on terms, then a court might make the final decisions. For example, the squabbling between the estranged partners who founded TransPerfect resulted in a court ordering the sale of the company that employs 3,500 people. In another case, a woman who started an online diaper service lost the company in court to her ex-husband.

Someone who owns a business and wants to end a marriage could enlist the help of an attorney. Alternative dispute resolution methods, such as mediation, suggested by an attorney might allow a client to engage effectively with the estranged partner and come to terms about the divorce settlement. An attorney might also support the process of a collaborative divorce in which the parties along with their respective attorneys meet with accountants and other professionals to gain information pertinent to negotiating a reasonable resolution.

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