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Do it Yourself - Living Will
Becoming a Successful Landlord
Starting your small business
Guide to Buying Real Estate
Warranties
and Indemnity clauses in Publishing
Divorce Effects on Small Businesses
With a lack of strong family business divorce strategy, the effects
of divorce on a family business can be detrimental to the family and to the
business. The most catastrophic problem that a family business can face is
divorce. Divorce can affect everyone in the family. It also potentially affects
non-family members who work for the family business. It is imperative to think
beyond the traditional consequences of divorce and develop a smart family
business/divorce strategy.
Research indicates that more 50% of all marriages in the United States result in
divorce. The statistics on second marriages are not any better. Approximately
30% of family businesses survive from the first generation to the second one;
Nearly 12% successfully pass on to the third generation and only about 3% reach
the fourth generation. The cause and effect of divorce influence the
aforementioned statistics, and a family business divorce strategy can reduce the
problems and even save the business.
How effective are prenuptial
agreements in case of a divorce?
Prenuptial agreements will not entirely prevent the causes and effects of
divorce, but they can certainly help reduce some of the legal problems
associated with divorce. On the other hand, many business running families do
not take advantage of prenuptial agreement. Few families actually use a
prenuptial agreement, because of the controversy and uneasiness of broaching
this subject prior to a marriage.
Accomplishing a Quick and Easy Divorce:
A couple can have an "quick and easy" divorce in general when there are no
children involved and few assets involved. This can be accomplished using
legal
papers for divorce. However, if the couple getting the divorce are business
partners, matters become more complicated. In this case, the divorce can
become complex and costly to resolve, and may potentially force the liquidation
of the business.
The ramifications of divorce on a family business can be disastrous in numerous
and complex ways. For a family running a small business, divorce can be
devastating. Couples have to be realistic and pragmatic. If a divorce
situation arises, they have to think in terms of separating the divorce from the
business in order not to allow the marriage failure result in a business failure
as well. This can be done simply by agreeing on a peaceful dissolution of
marriage by using
divorce
papers online for example without involving costly lawyers which can
financially drain the family business. It is prudent for family businesses
to have a well thought divorce strategy in order to attain a quick and easy
divorce While avoiding costly and lengthy legal battles.
Sarah Wilson
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