Perry & Perry, PLLPPerry & Perry PLLP2024-02-14T23:09:34Zhttps://www.pppllp.com/feed/atom/WordPress/wp-content/uploads/sites/1201766/2021/11/cropped-perry-perry-siteicon-32x32.pngOn Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=478162024-02-14T23:09:34Z2024-02-14T23:09:34ZBusiness agreements
Establishing clear and formal business agreements is essential. This involves defining roles, responsibilities and decision-making processes to prevent conflicts. It's also important to agree on how profits will be divided and how future business decisions, including the potential sale of the business or the introduction of new partners, will be handled. Such agreements should ideally be put in writing.
Communication and boundaries
Effective communication is the cornerstone of any successful partnership, especially when former spouses continue to operate a business together. Establishing a professional tone is crucial, focusing on business matters and avoiding personal issues that may interfere with business operations.
Regular meetings should be scheduled to discuss business progress, set goals and address any concerns. Additionally, setting clear boundaries about what topics are off-limits and keeping personal life separate from business can help maintain a healthy working environment.
Conflict resolution strategies
Despite the best efforts, conflicts may arise. Having a predefined strategy for conflict resolution is vital. This might include agreeing to seek external advice or mediation when disputes can’t be resolved internally. It's important to address any disagreements head-on, focusing on the business's best interests rather than personal grievances. A commitment to resolving conflicts in a constructive manner can prevent them from escalating and affecting the business.
Continuing to operate a business together post-divorce requires some level of trust. Having a comprehensive contract can make this a bit easier. Working with a legal representative who can handle this and other aspects of the property division process is critical to ensure all necessary concerns are addressed proactively during the process.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=478152023-11-10T00:36:36Z2023-11-10T00:36:36ZCoercion or claims of duress
If the business owner coerced or manipulated their fiancé into signing a prenuptial agreement, their spouse may use that misconduct to invalidate the agreement later. Scenarios in which someone felt as though they had no choice but to sign, such as when one fiancé was pregnant but the other would not finalize the marriage without the contract, could lead to the courts deciding to invalidate the agreement later.
Hidden assets or inaccurate disclosures
The negotiation of a prenuptial agreement requires the thorough and accurate disclosure of someone's resources. If one fiancé intentionally hides certain assets, that misconduct can undermine the validity of the prenuptial agreement later. Proof of financial misrepresentation may lead to the court setting aside the agreement during divorce proceedings.
Unconscionable terms
Frequently, those requesting a prenuptial agreement primarily want to protect themselves and the assets they view as most valuable. For a contract to be valid and enforceable, it has to offer something of value to both of the parties involved. If the agreement only protects one spouse at the cost of the other, the family courts may decide to set aside the agreement because it is unconscionable and therefore unenforceable.
Even in scenarios where the courts may not uphold a prenuptial agreement, it is often still possible for people to protect the business that they own. Seeking legal guidance during divorce proceedings can decrease the chances of an unfavorable outcome.
]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=478142023-08-11T05:08:51Z2023-08-11T05:08:51ZHave an informal conversation
In some cases, a conversation is all that is needed to overcome a disagreement. For instance, you might hold a quick meeting to clarify the terms of a new contract or to explain why you added or dropped a client without consulting your partner first. These conversations can be held with or without advisers present. However, keeping a record of what was said in case a solution cannot be reached may be a good idea.
Take the matter to mediation or arbitration
Mediation means that you have decided to involve an unbiased party tasked with facilitating a conversation. Having a neutral party present may prevent unnecessary conflict. Arbitration is like litigation, except that the process is more streamlined. In addition, the arbiter's ruling is final, meaning you can't appeal it or take any other action.
Dissolve the company
Resolving partner disputes may only be possible with a court order or by taking drastic action outside of court. For example, you may sell your equity stake to your partner or let the company go under. A judge may also order that the company be dissolved.
Issues with a partner may put the stability of your company at risk. Therefore, settling a dispute as quickly as possible is generally preferable even if it means conceding money or control to your partner to promote unity and peace moving forward.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=477742023-07-18T06:49:26Z2023-05-14T23:31:31ZReview the contract terms
Carefully reviewing the terms of the contract will help you determine whether the other party is truly in breach of the contract or if they are simply experiencing a temporary obstacle that can be resolved. If you determine that a contract dispute is expected to arise, you should take immediate action to protect your interests.
Send a letter to the other party
A letter can inform the other party that you consider the contract to be breached. The letter should outline the steps you plan to take to enforce your rights. This letter should be sent as soon as possible after becoming aware of the anticipatory breach, as delays could harm your chances of success.
Negotiate a resolution
Negotiating a resolution with the other party may involve renegotiating the contract terms or agreeing to an extension of time for performance. This approach can be beneficial if the other party is willing to work with you and there is a possibility of salvaging the relationship.
Litigation
If negotiation is not possible, unfortunately for the relationship, you may need to consider taking legal action to enforce your rights. This could involve filing a lawsuit for breach of contract or seeking an injunction to prevent the other party from taking actions that would harm your interests.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=477732023-07-18T06:51:52Z2023-02-13T21:57:36ZCivil litigation and challenging a prenuptial agreement
Civil litigation is the process by which a legal dispute is resolved through the court system. When challenging a prenuptial agreement, there are several reasons why a court may choose to invalidate the agreement. Some top reasons for invalidating a prenuptial agreement include coercion, fraud and a lack of full disclosure of assets.
The writing and signing of prenuptial agreements must happen before the wedding and be signed voluntarily by both parties. If either party did not have the opportunity to understand the terms of the agreement fully, or if there was pressure on one party to sign, the agreement may be deemed invalid.
Additionally, the terms of the agreement must be fair and reasonable at the time it was signed and must not violate any laws or public policies.
Challenging a prenuptial agreement in court can be a complex process, but it may be necessary to ensure that you and your assets are protected in the event of a divorce. Several reasons could be the case if you believe the prenuptial agreement is invalid. For example, if signing the agreement was under duress or coercion, if one party was not given enough time to review and understand the terms entirely, or if the terms are deemed unfair or unreasonable.
Introducing new ideas
Prenuptial agreements are not one-size-fits-all. Each agreement is unique and will require careful examination to determine its validity. Additionally, laws surrounding prenuptial agreements can vary from state to state. Therefore, whether entering a prenuptial agreement or facing a legal challenge, it's good to be informed about your rights and responsibilities.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=477722023-07-19T04:41:53Z2022-11-10T03:52:23ZBusiness as a marital property
In Alabama, when it comes to property division during divorce, the family law court must first identify which of your assets are marital or separate. Marital property is any property either spouse obtained during the marriage. This includes business assets, regardless of whether the business is a corporation or not.
Generally, Alabama divorce laws presume all income earned and all property acquired during the marriage to be marital property, even if it's in one spouse's name only. The court will look at the following factors when classifying your business:
How and when you or your spouse acquired the business
Whether the asset has increased or decreased in value since you or your spouse acquired it
The source of funds used to acquire the asset
The purpose for which you acquired the business
The courts will then follow the equitable distribution model when dividing that business. This means that the judge will distribute your assets in a way that is fair but not necessarily equal based on your unique circumstances.
Potential impacts on your business
Divorce can affect your business's day-to-day operations because you may have to make some changes to accommodate your new circumstance. For example, if the court awards your spouse a substantial share of your company, giving them a voice on your board, things may get complicated when it comes to decision-making. Also, on a more personal level, divorce can be emotionally and mentally draining, impacting your work performance.
Separation may also affect your business assets. If your spouse were to claim a portion of your business assets in the divorce, it could have a significant impact on your company's finances.
The good news is you can always prevent these negative impacts from happening to your business. For example, you could set everything straight through a marital agreement or buy out your spouse's share in the company when the split is inevitable.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=477672023-07-18T06:51:42Z2022-08-19T19:20:45ZMake sure to settle with your spouse
When it comes to divorce (business owner and divorce) issues, your first thought should be to reconcile your present interests. If you currently own a business with your spouse, you can offer to buy out their share. This will give you the legal and economic freedom you need to pursue your new business without any constricting ties to a previous marriage.
You may be legally compelled to make full disclosure of your future plans to your former spouse. You can emphasize that your investor prefers to work with you alone. Your spouse may accept a small royalty drawn from future earnings.
What to do if they won't compromise
Even after you have explained the situation to your former spouse, they may refuse any kind of compromise. You will thus have to seek a resolution to your issue by other means. One of the best things you can do is to convince your angel investor to buy a majority share of the business.
The logic behind this move is to separate your portion of the business from that of your investor. This will limit the amount of influence that your former spouse can seek to gain over your business. Even if they do succeed in getting some percentage of the business, it will only come from your portion. The rest will be left untouched.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=477582023-07-18T06:49:17Z2022-05-16T20:55:06ZArbitration
This is a process where both parties agree to submit their dispute to an arbitrator, who will then render a decision that is binding on both parties. Arbitration can be an effective way to resolve a partnership dispute because it allows the parties to have some control over the outcome of the case, and it can be less expensive and time-consuming than going to court.
Mediation
This is a process where the parties meet with a mediator, who can help them try to reach an agreement. Mediation is different from arbitration because the mediator does not make a decision; instead, he or she helps the parties communicate and try to reach an agreement on their own.
Litigation
This is the process of going to court and having a judge or jury hear the case and decide on a resolution. Litigation can be expensive and time-consuming, but it may be necessary if the parties cannot reach an agreement through mediation or arbitration. The main advantage of this method is that it gives the parties the opportunity to have their day in court and present their case to a neutral third party.
Collaborative law
This is a process where the parties work with their business law attorneys to try to reach an agreement without going to court. For instance, you and your business partner might agree to participate in a series of meetings with your attorneys to try to resolve the dispute. This method can be less expensive and time-consuming than litigation, and it also allows the parties to have more control over the outcome of the case.
No matter which method you choose, it is important to remember that partnership disputes can be complex and emotional. You should take the time to understand the process and choose the method that is right for you.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=477522023-07-18T06:51:50Z2022-02-14T15:51:42ZWhat are liquidated damages?
Put simply, liquidated damages are a pre-determined amount of money that is payable by one party to another in the event of a breach of contract. They can get awarded for any number of breaches, including delays or late completion.
For instance, a construction contract may state that in the event of late completion, the construction company owes $100 to their client for every day they are late. Therefore, if they're 20 days past the deadline, then the construction company would owe $2,000 as liquidated damages.
The main purpose of liquidated damages is to provide certainty and allow construction companies and their clients to estimate the costs in the event of construction disputes.
Are they enforceable?
Enforcing liquidated damages can be difficult as the party seeking to rely on them needs to show that the clause is not a penalty but rather a genuine pre-estimate of the losses that they would likely suffer in the event of a breach.
In construction contracts, liquidated damages are more likely to be enforceable where the contract is for a specific project and not ongoing work. This is because it can be harder to estimate losses in an ongoing construction project.
When should construction companies be concerned?
It's always a good idea for construction companies to seek advice before entering into construction contracts, especially when dealing with liquidated damages. There is a fine line between what might constitute liquidated damages and a penalty. Ultimately, it's important for construction companies to be aware of the potential risks involved in any contract and take steps to mitigate these risks wherever possible.
Construction companies often get away with being late without any consequences. Thankfully, liquidated damages clauses are there to ensure that construction companies take their obligations seriously and not delay construction projects unnecessarily.]]>On Behalf of Perry & Perry PLLPhttps://www.pppllp.com/?p=476942023-07-18T06:49:21Z2021-12-17T01:12:48ZCommon forms of tortious interference
A person convincing another to break their contract with someone else is the most common tortious interference. Under business law, someone can offer below-market prices to get someone to break their contract with another person. In the courtroom, negligence isn't enough; the person must act intentionally. Motivation is the main thing that a court looks at in these cases.
Tortious interference claims in court
The defendant of a tortious interference claim has to have interfered with a contract or relationship with unethical practices, blackmail, force or inducement. There are two types of plaintiffs who can sue a person for interference. The first plaintiff is the one who the defendant got to violate their contract or relationship. The second plaintiff is the person or company that lost economically.
The basic tortious interference claim elements for court are:
A valid economic or contract expectancy
The defendant knowing of the expectancy
The defendant's intent to interfere
Improper interference
Damages to the plaintiff
A person can claim tortious interference if they already had a legal business relationship or contract. Some business contracts are terminable at any time and aren't usable in tortious interference claims. Someone ending a relationship or contract with a business isn't always improper.
A person needs to improperly interfere with a contract or business relationship to be tortious interference. The defendant has to know of the business expectancy before interference; they must intend to hurt the business. The motive of the defendant is a concern of the court, but not all intent is tortious interference in business litigation.]]>