Couples who choose to get divorced will need to address multiple legal and financial issues, including making decisions about the division of marital property. While addressing property ownership will be an important aspect of every divorce, it can become more complicated in high net worth divorce cases, including those where a spouse is a business owner. Family businesses can be an especially complex issue in an Islamic divorce, since the close relationships between family members and business associates may be affected by the end of a couple’s marriage. Spouses will need to be sure their rights and financial interests are protected in the decisions made. Business owners will want to determine how they can protect a family business and ensure that it can continue operating smoothly and successfully during and after their divorce.
Options for Protecting a Family Business
Ideally, business owners will want to take steps to protect their business either before they get married or during their marriage and before divorce becomes a possibility. A prenuptial or postnuptial agreement can protect a business by stating that one spouse will maintain full ownership of the business in the case of divorce, or these agreements can make decisions about how ownership of business interests and other assets will be handled if the couple’s marriage ends.
Those who do not have a prenuptial or postnuptial agreement may need to determine how to divide business interests during their divorce. If the business is a marital asset because it was founded or acquired while a couple was married, the value of the business will need to be divided along with other marital property. A business owned by one spouse before the marriage will usually not be considered marital property, but some business assets may be included in the marital estate if the business increased in value after the couple was married, or a business owner may be required to reimburse their spouse for the contributions they made to a family business....