There are many risks associated with business partnerships in Massachusetts. One that catches many business partners by surprise is the risk of their partner’s divorce. These entrepreneurs may have taken every step to protect the company via prenuptial or postnuptial agreements, solid estate plans and even a succession plan. However, if their business partner failed to take similar steps, a divorce may cost them both a good chunk of the business.
Forbes notes that most states consider a business a marital asset. This means that during a divorce, that business may be subjected to division like any other asset. This may cause the divorcing partner to lose some of their stake in the business to the ex-spouse.