Business, family, legal, entertainment services, forms and more! GO TO

Sunday, July 26, 2015

Divorce and Business

How to Protect your business from your partner's divorce!

Before you formed your business partnership, did you vet your partners’ marriages along with their bank statements? You may not consider it until divorce proceedings are underway, but your partners’ spouses likely own a part of your company, whether you want them to or not.

In my day job working on complicated (and often highly contentious) legal matters, I rarely see  a case  where the day to day  operations, valuations and ownership  structure of a  business  is not affected  in some way by a break up. If your partner ‘s soon - to –be ex receives a part of the business  in the divorce settlement ,you’ll gain a new , unwelcome partner who now has a voice  in how your business operates  and, by extension , can impact  your own net worth.

We recommends including a contingency for divorce in your company’s set up. “Start with a well drafted partnership , ownership or shareholder agreement that requires  a partner’s spouse to sell his or her awarded interest back to the company (or to its co-owners) in the event of divorce.“ This buy -sell provision should contain a comprehensive list of terms and conditions, including the method by which shares will be valued, the transaction timeline and the source of funds to be used for the purchase, such as cash on hand, an existing line of credit and/or loan.”

To ensure that the “Right to purchase” can be upheld in the family court , it is worthwhile – and often essential – to have all non-partner spouses consent in writing to all aspects of the agreement long before any marital dispute arises. In the event a buy –back is not possible, this agreement can limit an ex’s voting rights and/or management participation. Even with such arrangements in place. Divorces play havoc on operations. If one partner has to step away from the day-to –day operations to tend to his or her divorce, the balance is thrown off. Resources are spread thin, resentment increases very quickly, and the partnership begins to look more like a sole proprietorship. The impact on cash flow can be dramatic and devastating as well.

Plan for the worst. Divorce, illness, disability or the death of a loved one will affect your partner’s ability to contribute to the business. You need to set up a legally binding plan that addresses how to handle these challenges. One that answers some basic questions, such as how long one partner can step away from the company before his or her compensation drops. Who will assume his or her daily duties? If a loan or pay advance is needed to cover skyrocketing legal bills, what are reasonable terms?”

These are tough queries, but it’s better to ask them now than in the middle of a messy divorce. Handled correctly, every partner, including you, should come  away with a greater sense of trust in one another to do the right thing to preserve the company –even when someone’s personal life is going down the drain.

M & A Legal Management
(888) 449-5841

Tuesday, July 7, 2015

Beautiful collection of Cars to be Auctioned and I'm on my way!

Found out through a friend and later some research that some cares of Maria Callas were going up for auction. Turns out that is not exactly accurate, they are not Maria Callas’s own cars that will be acutioned through Artcurial on July 20th in Monte Carlo, but those formerly owned by ‘a friend’ of the illustrious soprano. However; that friend has an eye for automobiles!

Excuse me as I'll be taking off next week ti get an up close and personal look at these beauties. Besides, its Monte Carlo...the Vegas of Europe! With LESS denim and flip flops! UGH!

Variety is the spice of life...

Just 11 cars form the ‘Estate of a Friend of Maria Callas’ sale, but we couldn’t think of 11 more diverse vehicles if we tried. The auction’s curious name is warranted somewhat by the fact that two cars, a brace of silver Mercedes 600s, did once belong to Maria Callas. Both boasting just two owners from new and, naturally, fascinating histories, the cars ­–1966 and 1971 model years respectively – are each estimated to fetch 60,000-100,000 euros.

Elsewhere, the lots range from a 1908 Cadillac Type S (est. 30,000-60,000 euros) to a low-mileage 1989 Aston Martin Lagonda. There are several Rolls-Royces, including a relatively tidy Corniche III (40,000-60,000 euros), and a bright yellow Lamborghini Diablo, the sale’s sole supercar (if we could have just one supercar, it would probably be a Lamborghini, too). The ultra-low mileage in this case will either entice or repel, but it looks to be in okay condition. It’s estimated at 40,000-60,000 euros.

Photos: Artcurial