Breakdown of a marriage can be painful, but individuals should not allow the dividing of the marital assets to contribute to the grieving process. The divorcing spouses should consider an approach that would be a win-win for the family. One way to create that win-win situation is by dividing any business assets between the parties in an equitable fashion.
During the marriage, spouses can operate private companies, S-corps and businesses that they started together to increase the livelihood of the family. However, it may become unbearable after divorce to maintain that successful business empire as a partnership. One divorcing party can consider selling the majority stake in the business to their former spouse.
An attorney may draft an agreement where one spouse becomes a transferrer, and the opposing party becomes the transferee. This arrangement is one vital business transaction that many couples implement as part of their divorce decrees. In many cases, one divorcing spouse wants to relinquish full rights to the private business empire. Their attorney may discover financial assets and make a viable contract with the opposing party whereby the retained party would receive a financial buyout agreement from the opposing party stating that the primary party would no longer have access to the business assets nor would be responsible for the business liabilities.
Upon the transfer of assets, the retaining party would not be subject to any lawsuits upon relinquishing primary rights to the business. The retained party could use the funds from the sale of the marital assets to buy new assets or start other business entities. Divorcing individuals who have questions about crafting such a contract may consult an attorney about the details.