Protecting your Business Interests
As a business owner you know how important your business is to your continued survival and to the maintenance of your lifestyle. However, you may not be aware of how easy it is to loose your business, or a portion of it, in a divorce. If you have business partners I can assure you they are not interested in acquiring a new business partner as a result of your divorce.
There is significant case law that parties’ must waive their rights to in order to protect business assets. For example the doctrines established in Pereira V. Pereira and Van Camp V. Van Camp , stipulate that under curtain conditions a marital community may acquire an interest in a party’s separate business property or the value thereof when the business appreciates in value after the marriage.
If you don’t have a prenuptial agreement your wife will be entitled to fifty percent of the value that your business appreciated during your marriage.
The parties’ agree that the following property shall forever be and remain the Intended Husband’s sole and separate property:
All property that is derived from the rents, issues, profits, proceeds or income from or appreciation in value of the Intended Husband’s sole and separate business property(s), regardless of whether any appreciation in value in that property is attributable either to natural enhancement due to market or similar conditions, or to the management, services, skills, efforts or work, or any combination thereof, of either or both of the parties’.
Each party hereby expressly waives any and all rights under the doctrines set forth in Pereira, Van Camp and similar authorities.