A couple’s divorce or separation often ends with dividing assets in Nashville, Tennessee. Divided assets may be lower in value. A family business has a high chance of becoming a loss after divorce. During the heightened emotions of a divorce, it’s important to protect assets.
The International Relationship Property Act
The International Relationship Property Act of 2021 provides statutory authority for couples after a divorce. While dividing assets tops contentious divorce topics, the act allows common management even after divorce. The act doesn’t overstep what contracts already owe parties from divorce or decide what’s matrimonial property. The act works for assets both parties agree are matrimonial property. A statutory regime sets how to control the assets, and the divorce shouldn’t change the routine. The trust allows the asset to remain intact after separation or divorce.
Under the act, family businesses are a special category of property. The unexpected sale of family business ownership interests can hurt the value. The sudden change could hurt the interests of the beneficiaries and the business. Financial institutes consider risks of divorce, but the act has special provisions. A family business remaining under the control of a key party is best for the beneficiaries and lenders.
The act works best for couples who live in areas where it’s common to dismember trusts after a divorce. The act isn’t an alternative to a prenup agreement. A new couple might use the act because their assets combined are better. Matrimonial property under multiple jurisdictions could benefit from the new rules. Ensuring the succession of ownership of a family business provides a higher security level to lenders.
The act helps planners protect the assets of high-net-worth families. Family businesses are high on the list of contentious divorce topics. The act works with existing matrimonial property law to keep family businesses running. The new laws help protect the family business and the lenders after divorce.