Richard E. Fowlks, Attorney at Law

Divorce can change the direction of a business

When you get married, you assume it will be forever. This is understandable, but you can't be so focused on that point that you make mistakes that can cost you dearly if the marriage does fall apart. If you have a family business, you need to think about what might happen to that if you do go through a divorce. The possibilities might be rather frightening.

There are a few ways that a business can be handled in a divorce. Of course, if you had the business going into the marriage, you may have a prenuptial agreement that outlines what is going to happen. If this is the case, the terms of the agreement will be followed as long as the court doesn't determine that they overly favor one party.

Without a prenuptial agreement, there is a chance that the business will have to dissolve. If this occurs, you and your ex might be splitting the profit from the sale of it or from the liquidation of assets. Another possibility is that you would have to buy out your ex's share, so you could continue running the business.

There is another option that is possible for the division during divorce. You and your ex might continue to run the business together, but this might be challenging. In this case, you would have to set clear rules about who is in charge of what. The more details you have, the better the business will likely fare.

It is always a good idea to look at things from a practical standpoint. Find out what is possible and what might happen so that you can set protective plans in place.

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Richard E. Fowlks, Attorney at Law
1607 N.E. 41st Avenue
Portland, OR 97232

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