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Owner's divorce leads to business complications

Our blog is about two topics: business law and divorce. Today, we have a story that combines these two topics in a highly controversial and combative lawsuit. The story isn't from here in Rockville, Maryland, but it concerns any business owner who fears what could happen if his or her business becomes entangled in their personal divorce.

Today's story is from Minneapolis, where an owner of Twin City Fan Companies -- which employs 1,500 people in a number of locations across five states -- was let go from his company by his three children who voted him out. At the same time, the owner, Charles Barry, was going through a divorce after it was found that he used company funds to fund his mistress.

Barry has since sued the company and denied any wrongdoing, and his family members have filed counter claims against Barry for his "greed ans self-dealing."

As you can tell, this is a warning to all business owners out there. Divorce filings can greatly complicate not just your personal life, but your business life as well. It can risk your place in your company, or it can drastically alter the financial landscape of your company. You can protect your business from a divorce before you get married by signing a prenuptial agreement -- but there are still logistical problems that can arise for a business as a result of an owner's divorce.

Source: Star Tribune, "Owner's affair divides family, costs Twin Cities fan business millions," Jeffrey Meitrodt, July 8, 2017

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