Business Continuity Planning for Co-Owners
Imagine that on the eve of your wedding, you make a plan to divorce your spouse, on friendly terms, in about 15 years. During those 15 years, you agree to work diligently and successfully to build a business. On the preordained day that your marriage ends, you announce that you are willing to give your soon-to-be ex-spouse one-half of your company’s business value in cash. Additionally, you let your ex-spouse value your company, because those are the terms of the agreement the two of you signed a year after you were married. Though this scenario may seem ridiculous, you may have done something quite similar in your business with your co-owners. Few owners begin working together with an expectation of future acrimony, much less litigation.