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Family business and divorce

Divorce for Nevada couples is often a stressful situation. It can become even more so when there is a family business at stake. Even in situations where spouses choose to take a mature approach to their breakup, there are several legal and financial issues involved in deciding what happens to a family business. Fortunately, there are several strategies that can be used that will keep the business intact even if a marriage fails.

The first set of strategies takes place before a couple marries. A prenuptial agreement is one obvious option. Before the couple exchanges vows, they come to an agreement about who will own the family business and its assets if the marriage eventually comes to an end. Another option is to execute a legal agreement that would require one spouse to buy out the other spouse's share in the business in case of a divorce.

If a couple hasn't taken steps to protect the business prior to their marriage, they may decide to execute a postnuptial agreement that addresses these issues. Other options include continuing to run the business together, which sometimes works out in the case of a very amicable divorce. If that is not possible, then the other spouse may wish to consider taking out a bank loan or bring in a partner so as to buy their former spouse's share of the business. Of course, selling the business outright to a third party, then splitting the proceeds, also remains an option.

Family business owners who are facing a high asset divorce may wish to speak with an experienced family law attorney. legal counsel could review a client's case and make recommendations as to how to deal with the company and to split the remaining community property.