In recent weeks, gossip headlines have been exploding with rumors of impending divorce for music superstars Beyonce and Jay Z. The couple married in 2008 and have one child, but media outlets report that they are currently booking separate hotels and hardly speaking. It is widely speculated that the couple is merely trying to keep up appearances due to their current joint tour.
It is not surprising that they would want to successfully complete the tour, as the pair will receive a $100 million paycheck after the tour ends in Paris in September. The tour promoter, Live Nation, has stated that a divorce during the tour would be devastating for public relations, since so many fans specifically want to see them perform as a loving couple. At this point, completing the tour together may be a feat, as they reportedly had an emergency meeting with Live Nation and a group of lawyers four days before the tour was to kick off. Four lawyers are allegedly accompanying them on tour to negotiate any conflicts that arise between the pair.
Business in the Midst of Divorce
When spouses are business partners, both parties’ livelihood is often dependent on the success of that business. If a couple divorces, the company is considered marital property and must be equitably divided. There are a couple of ways couples may choose to equitably divide their business:
· Liquidate and split the proceeds; or
· Have one spouse buy out the other spouse’s interest in the business.
Neither of the above options may be attractive to spouses in certain situations, however. If a business is particularly lucrative or meaningful to them, they may want to keep the company in operation, so liquidating is not an option. Additionally, neither spouse may want to be bought out and have to start a new business for the ground up. For such reasons, equitable division of a business can be a serious issue in a divorce.
A third option is for the spouses to end their marriage, but continue to run the business together. This option is, for obvious reasons, highly impracticable for spouses who can no longer communicate or agree in a healthy, productive manner. For couples who split amicably, on the other hand, it may be possible to continue to work together and profit from the success of the business they built. Some couples view a family business as a child–they cared for the business before the divorce and will continuing to care about it after the divorce.
It is not uncommon, however, for a divorcing couple to decide to keep working together only to have their working relationship later deteriorate. Beyonce and Jay Z thought they could remain professional and get through a tour, only to have the chances of making it to the $100 million paycheck seem slim–and they are not even divorced yet. These are all reasons why it is very important to make the correct decision regarding a family business in a divorce.
Boca Raton divorce attorney Alan R. Burton can advise you on all aspects of your divorce, including how to handle a family business. Contact our office today for help.