Practice Areas
Equitable Distribution (Property)
During divorce, marital assets are divided. Community Property States such as California and Texas provide that all property acquired during marriage is divided equally. In the majority of States, property is distributed based on statutory factors. This is called equitable distribution of marital property.
Buy-Sell Agreement
A buy-sell is an agreement between owners of a business which
addresses what is to occur upon the death of one of the owners or in
the event that one of the owners becomes disabled, retires, divorces,
or wishes to sell his interest in the business. The agreement provides
that the surviving owners of the business will purchase the deceased
or the withdrawing owner's share.
The
agreement should set forth a formula for determining the price. Often, the
formula will be accepted for valuation purposes during the divorce of a shareholder.
The agreement must state how the funds will be obtained to make the purchase.
Insurance companies sell a “first to die" policy which pays a
death benefit on death of the first business owner, thereby ensuring that
funds are available for the buy-out regardless of which partner dies first.
The agreement assures that the surviving owners will have a continuing business
that will also provide for the deceased owner's heirs.
Equitable Distribution FAQs
Equitable Distribution Articles
You may also want to visit our Family Law FAQ and Publications pages for additional information.