What you should know about divorce

Description

Abstract: When divorcing spouses own a business, it can get ugly and expensive — and potentially put a loan at risk. Intracompany infidelity, customer attrition, employee turnover and shareholder buyouts are side effects that threaten financial performance. This article discusses some of the issues that can arise when one spouse controls the business, and how a buyout and a noncompete agreement may be necessary when both are in charge. But a sidebar looks at “collaborative divorce,” in which the couple decides to split up personally but maintain their professional relationships.