Long Island Law Firm, Markotsis & Lieberman, P.C., Discusses How a Transactional Attorney Decreases Complications During the Divorce Process
HICKSVILLE, N.Y., June 4, 2019 /PRNewswire/ -- The likelihood of a married couple divorcing or staying together is about equivalent in today's society. When the choice to divorce is reached, there are numerous assets, including family-owned businesses, to consider. Long Island law firm, Markotsis & Lieberman, P.C., discusses how a transactional attorney decreases complications during the divorce process.
Many divorces are settled through consensual, out-of-court resolutions. Typically, before or after the start of litigation, an agreement will be reached by both parties. However, the process may differ when a business is involved. Once it is established that there is a jointly owned business between the two divorcing parties or a business that provides the livelihood for both parties, a transactional attorney should be contacted. A transactional attorney is a lawyer who specializes in transactional business law. The purpose of bringing in a transactional attorney is to assist with issues relating to a business owned by one or both spouses.
It is possible that the non-owner spouse is awarded an interest in the business. The applicable shareholder's agreement or operating agreement may have language relating to handling that situation. If not, the transactional attorney can assist in crafting an agreement whereby the non-owner spouse's awarded interest is purchased. This is a solution that benefits everyone in regards to the business. Being that the transactional attorney is well-versed in the common problems and pitfalls of a closely-held business, they will be able to identify the best solution.
Understandably, many divorced business partners that co-own a business may no longer wish to work together. In this case, transactional attorneys may propose methods for a reasonable buy-out. The buy-out can take the form of a sale of the entire business to one spouse, with a portion of the sales price being paid out over time with secured or unsecured seller financing complete with certain operating covenants and potentially with a portion of the "earn out" sales price tied into future firm revenues. The payment plan necessary for these types of agreements should be feasible for the spouse remaining in the business, and also give the other spouse a realistic and fair economic reward and roadmap to move forward post-divorce. In this scenario, the transactional attorney will be able to draw up a contract that allows both spouses to remain financially stable, while also ensuring the business is unharmed by the change in ownership.
Another option available to a divorcing couple is to sell the business entirely. A transactional attorney can offer the proper steps to make this happen. As an attorney well-versed in business law, this will be an ideal use of their talents. The transactional attorney will be able to put their expertise to use and ensure a desirable outcome. This solution will allow the spouses to receive a portion of the profits and begin a new professional career.
When the subject of divorce occurs, it is imperative for both parties to take the necessary steps to not only protect themselves but their business as well. Contacting a transactional attorney may be the best solution for those looking to keep their business afloat after a divorce. Their expertise may be a welcome solution to an otherwise unpleasant situation.
About Markotsis & Lieberman, P.C.: Markotsis & Lieberman, P.C. is a general practice law firm. Practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys are here to guide you through every step of the legal process providing personalized attention to every client. When you're facing a complicated legal situation, our team of legal experts is there to fight for your rights.
SOURCE Markotsis & Lieberman, P.C.
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