When two married people in California decide to split up, the impact can have long-term financial repercussions. Especially complicated is when the two individuals own a business together. A couple of tips may help married individuals to address their shared business in a manner that is fair and mutually beneficial in the event that they get divorced and have to deal with property division.
First, it helps for a wife and husband team to sign what's known as a shareholders agreement, which will highlight guidelines of what should happen if one of the partners decides to sell in a divorce. Although unrelated business partners often sign this type of agreement, it is rare for married couples to do so, but it is wise to do this. A strong agreement explains how the two will split their business if one chooses to leave and puts the business' interests above the interests of each individual shareholder.