PLEASE NOTE: To protect your safety in response to the threats of Covid-19, we are offering prospective and current clients the ability to meet with us digitally and remotely via telephone, email and through video conferencing. Please call our office to discuss your options.
We are open for business and accepting new clients. We will be serving our current clients diligently during the Covid-19 situation.

Divorce and family businesses

We Serve Berks, Lancaster, York, Schuylkill And
Lebanon Counties And The Lehigh Valley

Divorce and family businesses

| Feb 13, 2017 | High Asset Divorce |

A family business can be a significant asset. Pennsylvania couples who own one should take certain steps to protect their investment in case they get divorced.

A prenuptial agreement is a legal document that can detail what will happen to the business if its owners divorce. In lieu of a prenuptial agreement, a buy-sell agreement can be used to address what would happen with the business during a divorce. It is a contract between the co-owners of the business that can be used to compel a former spouse to sell his or her interest of the business in a settlement back to the owners at a price that would be determined by a specified valuation method.

A trust can be used as a long-term protection mechanism to protect business assets for the next generation in the event a member goes through a divorce that would typically put the family business assets at risk. This estate planning tool is often used in high-net-worth situations.

One of the simplest ways to protect a business during a divorce is for both parties to maintain ownership. However, this may not be a viable option for couples that have particularly contentious divorces. For couples who choose this option, they should have a shareholder agreement created to give each spouse the right to buy out the other at an agreed-upon price.

A family law attorney can assist a client who is a co-owner of a family business and is going through a high asset divorce. In many cases, a resolution of this issue can be handled privately through negotiations.


FindLaw Network
Avvo 2014
Avvo Child Custody
Avvo Divorce