What Happens to an Arizona Family Business When You Divorce?
A family business is often one of the biggest and most important assets in an Arizona divorce. Many people invest their time, money, and significant efforts into a business, so it is completely understandable for company owners to worry about what will happen to their family business in a divorce. At theSingular Law Group, our experienced Arizona divorce attorneys are here to walk you through your options and zealously advocate for your interests in a divorce. To learn more, call or contact our office to schedule a consultation of your case.
Prenuptial or Postnuptial Protection
Prenuptial and postnuptial agreements can protect a family business in an Arizona divorce. Prenuptial agreements are signed by a couple prior to a marriage that establishes property interests for each spouse, and it can stipulate that one spouse retains a business if a divorce occurs. A postnuptial agreement can create the same property interests in a business but is signed after the wedding by the spouses. If a prenuptial or postnuptial agreement exists, it can keep a family business intact during and after a divorce.
Keeping the Business with Property Division
Arizona is a community property state for divorce cases, which means that all marital property must be split equally between spouses, but any separate property is retained by each spouse. If a family business was started prior to the marriage and all assets kept completely separate, a spouse may be able to claim it as separate property in a divorce. However, if the business was started after the marriage it would be considered marital property and thus subject to division. If one spouse is determined to keep the business, they may be able to give up other assets in a divorce to keep their interests in the company. However, if the value of the business is too great, it could result in the company being sold or split between the spouses.
Spousal Involvement in the Family Business
Other issues may arise in an Arizona divorce if both spouses were involved in the business. If both spouses were shareholders or partners in the company, the business documents may provide options for buying out a spouse in order to retain the business. However, spousal involvement in a family business can also result in the fracturing or selling of a company if the couple cannot agree on terms in their divorce. There are many factors that go into the determination of what happens to a family business in an Arizona divorce, and our lawyers are standing by to help you navigate your options.
Call or Contact Us Now
At the Singular Law Group, our knowledgeable and experienced attorneys understand how valuable and special a family business is to spouses that are going through a divorce. We are prepared to explain all your legal options and help determine what is best for you and your business. To learn more, call the office orcontact us today to schedule an evaluation of your case.