About Me

Business and Law

Welcome to my blog! My name is Johanna. I am a businesswoman who lives and works in the fantastic city of Sydney. When I decided that I wanted to expand my company, I realised I would need to enter into some new contracts. The legal side of this was something which really worried me. However, I spoke to some of my friends in the industry and they recommended a great business attorney who was able to help me. The attorney explained everything I needed to know and then drew up the contracts I needed. I hope this blog helps you to understand business and law.

Search

Categories

Latest Posts

Business and Law

How Can You Protect Your Current Business before Entering into a Serious Relationship or Marriage?

by Evan Hanson

If you own and operate a successful business and have met the person of your dreams, you may be considering entering a serious relationship. In this situation, it's easy to become blinded by your emotions and move ahead with a domestic or formal arrangement without regard for your business interests. This may be a very shortsighted view, and you should consider taking some steps before formalising your relationship or even continuing to live together informally. What should you do instead?

Predicting the Future

Nobody wants to think about separation or divorce when they are just starting out. They may believe that the future is only bright and cannot imagine that the relationship would deteriorate in such a way. Yet these things happen, and there is a high divorce rate across Australia. Therefore, it makes sense to protect any assets that may exist at the beginning of the relationship where possible.

Treating a Business As an Asset

Australian law considers a business an asset that must be regarded as part of a potential property pool. It doesn't matter whether the business is held as a partnership, sole trader or company; a family law court will want to look at its potential value before making any judgement.

Appointing a Valuation Expert

If it comes to that point, the court may appoint an independent valuation expert. This would be the case if both parties cannot agree on the value of the business, and until you can get such a valuation, you won't be able to proceed with a settlement.

Figuring out the Valuation

Just remember that a valuation will not solely reflect the market value of the business if you were to put it up for sale. Instead, it will reflect the property's value to its current owner and consider the benefits they would get if they were to continue their interest in the business.

Coming up with a Binding Agreement

With these potential complications ahead, it makes sense to address the situation before entering into any serious relationship. In this case, think about crafting a binding financial agreement with the other person, which will dictate how assets are divided in the event of a separation.

Working with Experts

If you want to enter into such an agreement, you are best advised to do so with the support of a family lawyer. Consult with a family law expert who has experience in the business world, so they can give you the correct advice and help you do the right thing. 

Share