When you are in business with a partner(s), it’s important to write a buy/sell agreement to protect all the partners involved by writing guidelines for selling the business shares. This also protects the interest of the business. The buy/sell agreement will dictate when shares can be sold, for how much, and in what manner. This agreement will protect the business and its assets in the case of a divorce, death, bankruptcy, or the end of a partnership. These are all reasons why it’s so important to sit down with your business partner(s) and a California business lawyer to formulate a buy/sell agreement just in case.
When writing a buy/sell agreement, you must decide how to handle the selling of shares by a partner in the case of a break in partnership. It’s also very important to establish a plan in the case of a divorce. For example, if one partner gets divorced, will his former spouse be required to sell any shares received in the divorce back to the other partner(s)? You may also want to consider what to do in the case of a death of a partner as well as a partner’s personal bankruptcy. While these are not pleasant things to think about, these are all things that are important to consider in order for your business to succeed.
Contact an experienced California business lawyer to determine exactly what you want to touch upon in your buy/sell agreement and to make sure everything is included. Catanese & Wells is a business lawyer with over 30 years of experience in business litigation. It’s important to choose a lawyer who will consider your business’ specific needs and has your best interest in mind while helping you write your buy/sell agreement.