So what has baseball taught us about divorce? Baseball has reminded us how divorce can destroy a business. The Dodgers, a Major League Baseball (MLB) team in Los Angeles, is owned by Frank McCourt. Mr. McCourt is going through a highly publicized divorce. Ms. McCourt is seeking a share of the
Dodgers. The Dodgers have been struggling financially and it was recently reported that Mr. McCourt had to borrow 30 million dollars from FOX to meet payroll. Yesterday, MLB announced that it was taking over the day to day operations of the Dodgers. http://lat.ms/emt0E1 This is similar to the FDIC taking over a bank or a corporation taking over a franchise. So how can someone protect themselves from being in Mr. McCourt’s position?
Planning, Planning, Planning
Divorces can be expensive. The greater the assets that are involved the more likely the parties will fight tooth and nail. Between two sets of living expenses and legal fees a divorcee may find that their nest egg is no longer as big as needed. Additionally, small businesses are frequently the victims of the financial pinch.
A recent article by Jeffrey A. Landers, “Divorce-Proof Your Business, Even If You’re Still Single Or Happily Married!” provides some strategies for protecting your business in case of divorce. http://t.co/vYVIQLu. He focuses on women business owners, but the article’s principles can be applied to men business owners. The purpose of the strategies can be summed up as follows:
“Consider this as a type of insurance policy, similar to your homeowner’s insurance – you hope you never have to use it but you feel secure having it. And, if that storm ever blows through and levels your house, you’ll be really glad that you have it!”
Divorce is similar to all major life events. It goes a lot smoother with a little planning. Because each state’s divorce laws are different, contact a local divorce attorney for divorce planning advice.