In many cases, Michigan couples who run businesses together met when the company was worth little. As the company increases in value over time, it may represent most of that couple’s net worth. In the event of a divorce, the company may either need to be sold or incur heavy debt if a spouse cannot be bought out. This may be true even if only one spouse ran the company during the marriage.
Companies that are already deep in debt may wish to take on a partner or look for investment from a private equity firm. It may also be possible to reach an agreement on a property settlement note. This is a long-term loan that is paid with interest over a predetermined period of time to compensate a spouse for his or her share of the company.
It is possible that a couple could choose to retain their business relationship even if their romantic relationship failed. However, this may only work for those who don’t have lingering legal or emotional issues that may cloud their chances of working together. It may also be a good idea to have a shareholder agreement drawn up. This allows one or both parties to sell their interest in the company at an agreed upon price.
Those in this situation who are looking to dissolve their marriage may wish to talk with Oakland County divorce attorneys. An attorney might help an individual draw up buy-sell or shareholder agreements as part of a divorce settlement. Legal counsel could also review a prenuptial agreement to determine if it is valid. If it is, it may govern how a business is to be dealt with.