While having a family owned business can be an exciting way to work with your spouse, or to have something to pass down to your children, it also can be a huge liability if it ever comes in contact with a divorce. The majority of businesses will have contingency plans for a variety of circumstances that may happen, what they will do if they are struggling with debt, what to do what an owner or executive passes away, etc.
However, most don't have a plan of what will happen in the wake of a divorce if it is a family owned business. However, what if married spouses are just owners in the share of the company, how then is the business affected? What if together they have control over half or more of the company?
What is even more interesting is the fact that when there is a divorce proceeding, the company's information will be held confidential during the process, and yet once the Protective Order is completed at the end of the case; the company's deepest confidential information may be placed at risk because of the shareholders divorce. The reason the company will be exposed is because in order to have the assets divided property, experts will come and take a close look at the company, inside and out, therefore taking record of all aspects of the company.
The risks of a family owned business in the event of a divorce can be large, but this doesn't have to be the case. Businesses can prepare for these big changes beforehand so that if there's a divorce, their company, records and finances may be protected. If you are going through a divorce, contact a divorce attorney in Long Island, NY at the Meyers Law Group today for more information about how to handle the matters of your divorce, including assets such as your business share.