The effects of divorce are not only felt by members of the immediate family. Divorce is a legal process that permeates all aspects of personal life, including relationships with business partners. In most cases, when an individual talks of divorce in relation to a business they refer to the dissolution of a business partnership. Divorce and business are inseparable, especially where the business is a partnership. This means the process of divorce can damage business performance and relationships as well. This is mainly because business assets are included in the court’s reasoning when it comes to the granting of a divorce.
The assets owned by a partnership type of business are usually just like any other type of asset. The partnership assets are usually divisible under the principle of community property; this is a standard for division of property of divorcing partners in the state of New Mexico. It is very important to have a clear understanding of the principle and to have clear division of assets in the divorce. In the case of couples that had a prenuptial agreement before marriage, the matter of property division is usually a simple task as everything will be clearly defined and stated.
The issue of sharing of property is very much of concern to any marriage partners who are also in business together. When a husband and wife are in a business partnership together, it is logical that they will not only end their marriage but also dissolve their business partnership. This is because it would be very difficult to retain an ex-spouse as business partner. Clearly this means that business is affected by divorce. In such a scenario, one would be dealing with the division of assets as a result of the marriage, as well as the dissolution of a partnership.
A business partnership in such a scenario is always considered marital property and is subject to division in any way that the court deems fit. The principle of community property states that property should be divided evenly, but since in such a case an individual is not only a spouse, but also a partner in the business, there are other factors that should be given consideration which will affect the settlement. One important thing to remember is that separate property can be treated as communal at times, when in the interests of balance and fairness.
Sometimes when a business is treated as an asset it becomes difficult to distribute since the asset appears to be intangible. In such cases, it is advisable to engage the services of a qualified family law and/or divorce lawyer, who will render invaluable assistance in offering protection to personal retirement plans and any other funds or assets that might be tied to, or up in, the business. When getting a legal professional to help in the divorce process, it is imperative to look for those lawyers who specialize in matters of divorce and the associated division of property. Couples should ensure they engage a lawyer whose fees are within their personal budget, and who can fully meet their various expectations and needs.