Take Steps to Avoid Losing the Family Business to Divorce
Family-owned or controlled businesses are an important segment of the American economy. They account for about 90% of all American businesses, from large retailers like Walmart to small mom-and-pop shops, and produce more than half of the country’s gross domestic product. These businesses face all the same risks as publicly-owned businesses do – growing competition, changing technology, increasing costs of supplies, and the like. On top of that they face one more risk that their publicly-owned counterparts do not – divorce.
What happens to a business that is owned by a couple facing divorce depends largely on the steps the couple took, if any, to protect the business before their marital troubles began. Often the family has the majority of its assets tied up in the business, so one spouse buying the other out is not always an option. A recent MarketWatch article, “How to protect your family business during a divorce,” discusses different options available to couples who want to protect the businesses they worked so hard to create.