Sale of Business During Divorce
Basic Facts
Long term marriage. Quincy was the founder and president of a high tech engineering business consisting of various related real estate entities, limited liabilities companies, and an S corporation. During the pendency of the divorce, Quincy entered into negotiations for the sale of the business, which negotiations might not be completed and sale closed, if at all, until months or years after the divorce from Carol had been finalized.
Challenge
My client, Quincy, needed flexibility and freedom to negotiate with his potential buyer, while Carol needed protection to ensure she received the benefit of any deal. Assessment of the value of the business was necessary for divorce property division purposes but disclosures of business finances could have adversely affected the business negotiations. The situation was complicated by the complex ownership structure of the related entities and deep animosity between Quincy and Carol.
Solution/Value Added
Sessions by the couple with a divorce coach early on in the collaborative process prepared them to work efficiently and less emotionally with their lawyers and each other. In addition, Quincy’s corporate attorney, a longtime friend and trusted advisor to the couple, played a key role in restructuring the ownership of the various business interests and creating a contractual relationship between Quincy and Carol that would survive the divorce and address any reasonably anticipated business sale or disposition. No business valuation or other financial information was disclosed in the public court file, which enabled Quincy to pursue the business sale in a way which would potentially benefit both Quincy and Carol.