QUESTION
How can I protect our business if I brought a married partner on board and they decide to get a divorce?
Asked on Oct 10th, 2013 on Divorce - Michigan
More details to this question:
I brought a business partner on board and she is married. I want to protect the company from her husband if by chance she gets divorced. Her husband has already stated that he will not sign anything since he is married and gets any assets including the company or sell it to pay him off. He has already stated that I better pray they don't divorce. Do I have rights to protect myself and my company?
5 ANSWERS
Divorce Attorney serving Bingham Farms, MI
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Gottlieb & Goren, P.C.
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The value of your partner's interest is at risk, not the interest itself. Your okay if she doesn't need to liquidate or sell her interest to provide her husband with an equivalent share of the marital estate.
Answered on Oct 10th, 2013 at 3:13 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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This is one of the biggest dilemmas in bringing on a partner.. You should have an agreement between her and you as to the disposition of their interest in the business in case either of you get divorced.it should be part of a well written stockholder or member agreement.
Answered on Oct 10th, 2013 at 12:03 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Look, he is blowing smoke. He is entitled to one-half of his wife's share. However, that has to be mixed in with all of the other assets and all of the other debt. It may be that he gets a bigger interest in something else to not get an interest in the business. It may be that he will be a owner that won't have the ability to make any decisions. Don't worry about it until you have to.
Answered on Oct 10th, 2013 at 11:50 AM
Divorce & Separation Attorney serving Menasha, WI
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Petit & Dommershausen, S.C.
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You should have done so in your buy-sell agreement or partnership agreement before you added the partner. You need to see a business attorney immediately to figure out your options.
Answered on Oct 10th, 2013 at 11:41 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You have options but I need details to provide counseling. The business should be able to be protected.
Answered on Oct 10th, 2013 at 11:20 AM