Jul 1, 2005 12:00 PM, By Evelyn M. Capassakis, member, Private Company Services, Personal Financial Services Practice, Pri

By: By Evelyn M. Capassakis, member, Private Company Services, Personal Financial Services Practice, Pri

Stock in a closely held business can be the dominant asset of a married business owner. Therefore, if the owner gets divorced, the business is often the largest portion of the marital estate and the most vulnerable. Divorcing clients already have to deal with the emotional roller coasters of stress, anger and anxiety; it's not a good time to think business matters through carefully and make choices that will ensure what's best for their financial futures. That job often falls to the owner's estate planner. It's a critical role, especially when a client's soon-to-be ex-spouse has a claim against the business.

Although state law generally determines the rights and obligations of each spouse regarding marital property, these rights can be changed by mutual agreement (for example, pre-nuptial or post-nuptial agreements), or by moving to states with different laws. Upon divorce, a court also can alter the terms of legal and personal arrangements concerning the assets brought into the marriage and the assets acquired during the marriage.

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