Mt. Juliet and Lebanon TN
Any business that has two or more owners should have a buy-sell agreement. Some businesses even entail a husband and wife team as the sole owners. What happens if this martial partnership fizzles out and the pair becomes divorced? This is where a buy-sell agreement comes into play. The purpose of a buy-sell agreement is to outline the legal terms, conditions, and transfer of ownership of your business, in the event a divorce takes place between the married owners.
A well drawn out buy-sell agreement should address several factors. First, a market value for the sale or purchase of ownership interest should be determined. A formula determining the price, terms, and conditions for selling or purchasing the ownership interests should be addressed. Also, the agreement is to specify the source of funds that is allowed to be used for purchasing ownership interests. Some additional aspects a buy-sell agreement may include are to prohibit an owner from selling or transferring his or hers interests to a third party, or to restrict future spouses from owning a stake in the business.
These are only some of the aspects a buy-sell agreement can offer. Hopefully, these points help open your mind to the various situations that you could face, should a divorce occur among you and your spouse, also known as your business partner. Most people never want to think they could be a victim of divorce, but the unthinkable could happen to anyone. If you and your spouse own a joint partnership, Yancy Belcher, attorney at law, recommends a buy-sell agreement to protect all owners involved. Think about the future of your business and how you want it ran and by whom. If you have any children, think about protecting the investment you are saving for them.
For a consultation regarding a buy-sell agreement, contact Yancy Belcher, attorney at law. We welcome clients from Mt. Juliet, Lebanon, and Hermitage, Tennessee.