Divorce Services for Entrepreneurs and Self-Employed Individuals in Germany

Before initiating divorce proceedings, meticulous preparation becomes crucial, especially for entrepreneurs and self-employed individuals dealing with the dissolution of a marriage. It is vital for entrepreneurs and self-employed individuals to anticipate potential challenges and secure their assets in advance. In an ideal world, those affected should communicate clearly with their spouses about the marriage breakdown. Documenting this communication through legal means, such as through a lawyer, helps prevent disputes regarding the duration of separation when filing for divorce.

Our experienced family lawyers provide entrepreneurs and self-employed professionals with invaluable guidance and protection. Our team advise on protecting business assets and interests, and understand the value of safeguarding  financial stability during the divorce proceedings, protecting the interests of the entrepreneurial client or self-employed individual.

For entrepreneurial clients and self-employed professionals, gathering a comprehensive overview of family and spouse assets is paramount. Such a step involves securing relevant documentation such as business records, financial statements, and asset documentation. It is therefore crucial for entrepreneurs to maintain meticulous financial records, including the past 12 months’ business income statements, the latest tax assessments, business accounts, investment portfolios, and pertinent loan agreements. They should also note that securing contracts about the business assumes significance in the division of business assets during divorce proceedings. Such contracts can include partnerships or shareholder agreements,

As well as financial records, entrepreneurs and self-employed individuals should secure their property-related documentation, including rental agreements, mortgage or loan documents, and proof of deposits. All these documents can play a significant part in the divorce settlement. Additionally, entrepreneurs and self-employed individuals may need to consider revoking any power of attorney granted to the spouse for business or financial matters. This step may be advisable to protect business interests and financial security. At Schlun & Elseven Rechtsanwälte, our divorce law team will advise you on how such steps apply to your case.

For entrepreneurs and self-employed individuals seeking divorce in Germany, understanding the legal intricacies becomes pivotal. German law stipulates specific conditions for divorce, especially concerning failed marriages and living arrangements.

Proving a Failed Marriage: In German law, divorce is permissible only if the marriage is deemed to have failed (§ 1565 para.1 BGB). This failure is evident when the marital partnership ceases to exist, and there’s no expectation of its restoration (§ 1565 para.2 BGB).

Living Separately: Notably, living apart is a significant factor indicating a failed marriage (§ 1567 para.1 BGB). It establishes the breakdown of the partnership, especially when one spouse desires divorce while the other wishes to salvage the marriage. However, legally proving a failed marriage requires incontrovertible evidence, typically three years of living separately (§ 1566 para.1 BGB).

Exceptional Circumstances: In exceptional cases, the three-year separation rule can be disproved, allowing for an earlier divorce, albeit with detailed presentation and legal representation in court. However, departing from the shared home must be deliberated thoroughly, particularly for entrepreneurs and self-employed individuals. This decision carries substantial consequences, especially concerning child custody and residency rights.

Implications for Shared Property: Leaving the shared home without careful consideration can impact property rights. In cases involving entrepreneurship or self-employment, the question of property use arises. Departure without a clear intent to return can irrevocably relinquish rights to the shared property. Seeking legal counsel from German divorce lawyers is essential before making this decision, especially considering the potential impact on business or financial interests.

For entrepreneurs and self-employed individuals dealing with divorce, strategic decisions regarding living arrangements and shared property carry significant implications. Seeking legal advice and understanding the nuanced legal framework becomes crucial to protect both personal and professional interests during divorce proceedings.

For entrepreneurs and self-employed individuals, divorce brings forth a multitude of considerations that significantly impact both personal and professional spheres. Understanding the legal implications becomes paramount to protecting assets and dealing with the following complexities.

Spousal Maintenance and Child Allowance: Post-divorce, claims for spousal maintenance and child support often arise, presenting challenges in determining precise costs. Entrepreneurs and self-employed individuals frequently encounter complexities in calculating these figures, requiring expertise from German divorce lawyers. Our family law specialists, adept in German divorce law, can assist in elucidating pension rights adjustments, crucially addressed by the German Family Court.

Custody and Residence Rights: Custody and residency decisions become pivotal when children are involved. Entrepreneurs and self-employed individuals facing divorce must consider vital aspects affecting their children’s future. Prioritising the children’s best interests necessitates mutual agreements between parents. Legal guidance from experienced German divorce lawyers facilitates parents in reaching resolutions aligned with their children’s welfare.

Division of Assets: The division of assets post-divorce hinges on the marital property regime: community of accrued gains (Zugewinngemeinschaft), separated property (Gütertrennung), or community of property (Gütergemeinschaft). Each regime dictates asset distribution differently, influencing the entitlements of former spouses. Ensuring a fair division aligns with the chosen regime, emphasising the need for consultation with our German divorce lawyers to safeguard owed entitlements.

For entrepreneurs and self-employed individuals undergoing divorce, the complexities extend beyond personal considerations. The division of assets, spousal maintenance, child support, and custody arrangements intertwine personal and professional aspects, demanding meticulous legal guidance. Our expert team specialising in German divorce law provides tailored support, safeguarding the interests of entrepreneurs and self-employed professionals amidst divorce proceedings.

Divorce, while primarily a personal matter, can significantly impact the trajectory and stability of a business, particularly for entrepreneurs and self-employed individuals whose personal and professional lives are deeply intertwined.

Financial Strains: The division of assets, settlements, or support payments might strain the business’s financial health. Financial obligations arising from the divorce, such as settlements or support payments, can lead to increased financial demands for the individual and thus directly impact the business’s cash flow. In turn, this requirement to allocate funds might restrict available capital for operational expenses, investment in new projects, or day-to-day business requirements. This restriction can limit the business’s ability to seize growth opportunities or deal with unforeseen challenges. Such constraints may also impact the business’s ability to expand or invest in future endeavours. In such a scenario, the required finances that could have been allocated for business expansion, R&D, or market penetration may need to be redirected to meet divorce-related financial commitments.

Ownership and Control Disputes: Divorce often creates disputes over business ownership or control, particularly when both spouses have involvement or stakes in the business. Disputes over ownership and control can significantly impact day-to-day business operations. Uncertainty regarding ownership rights or disagreements on managerial decisions might lead to delays in crucial business strategies, hinder innovation, or create internal conflicts among employees or stakeholders. Resolving these disputes amicably or through legal means becomes paramount to sustaining business continuity and preventing disruptions in decision-making. Amicable resolutions through negotiation or collaborative divorce methods can offer mutually agreeable solutions. In cases where amicable resolutions prove challenging, legal recourse becomes necessary. Court intervention may be required to adjudicate disputes over business ownership or control. Legal representation from our team, experienced in business law and divorce proceedings, can be essential to protect your rights.

Valuation of the Business: Determining the accurate value of a business for divorce proceedings is often a complex and critical aspect of entrepreneurial divorce. The intricacies involved in business valuation methods and potential disagreements over the business’s worth can significantly impact the divorce process, potentially affecting the business’s stability and growth prospects. Numerous factors contribute to a business’s value, including revenue streams, profitability, market trends, assets, liabilities, intellectual property, and growth potential. Assessing these components accurately requires expertise and often involves professional business valuators or forensic accountants. Disputes or disagreements between divorcing spouses or legal representatives over the business’s valuation can prolong the divorce proceedings. Differing assessments of the business’s worth may lead to negotiations or even court interventions, potentially delaying the finalization of the divorce settlement.

At Schlun & Elseven Rechtsanwälte, our lawyers have extensive experience dealing with divorce cases within the entrepreneurial context. Our experience spans diverse industries, allowing us to tailor our strategies to suit the unique needs of our clients. Due to our expertise across legal fields, we are ideally suited to guide our clients concerning personal and business interests. Such knowledge enables us to provide our clients with holistic legal guidance, safeguarding professional and personal assets during divorce proceedings. We seek to understand the particularities of each client’s circumstances so that we can align our strategies with their specific needs and objectives.

We place particular emphasis on open communication and collaboration with clients. Schlun & Elseven Rechtsanwälte ensures that clients are actively engaged in decision-making, providing clear explanations and guidance at every stage of the proceedings. Regular updates and transparent communication channels enable clients to stay informed and empowered throughout the divorce process.

Our team advises clients about amicable solutions and their feasibility. Our experienced family law team specialises in negotiation and collaborative approaches to facilitate mutually agreeable settlements. We aim to resolve disputes and reach settlements outside the courtroom by fostering open communication and advocating for fair compromises. However, we know that such amicable resolutions are not always possible, so we stand prepared to guide our clients through the litigation process in Germany. Our legal team has extensive divorce litigation experience, and we provide robust advocacy and representation in court. We diligently protect our clients’ interests and rights, ensuring a solid legal defence and strategic manoeuvring through the complexities of litigation.

Beyond comprehensive legal expertise and services, Schlun & Elseven Rechtsanwälte offers empathy and unwavering support to clients during an emotionally challenging period. We understand the personal difficulties that are involved in such cases. Our firm’s compassionate approach ensures that clients feel supported, understood, and guided with care and sensitivity through the various complexities of divorce.

Prenuptial agreements (prenups) generally stand as important legal tools that offer protection and certainty in marriages. However, prenups are essential for entrepreneurs and self-employed individuals entering into marriage as they can safeguard assets, outline financial rights, and mitigate potential conflicts in the event of divorce. Entrepreneurs and self-employed individuals without a prenup (or “marriage contract”) take unnecessary risks.

For entrepreneurs, their business is an essential aspect of their being. It is more than a job or a source of income; it is also a lifetime project, a passion, and involves extraordinary dedication. A prenuptial agreement provides a safeguard by clearly defining the status of the business as separate property, safeguarding it from being subject to division in the event of divorce. This shield ensures the business’s continuity and integrity despite the marriage’s dissolution.

Prenups allow individuals to outline the division of property and assets acquired before and during the marriage. This is relevant for self-employed individuals with significant assets or those expecting future growth in their business endeavours. Delineating separate property and marital property helps prevent disputes and uncertainty during divorce proceedings.

Entrepreneurs and the self-employed often have fluctuating income streams and investment portfolios. A prenuptial agreement can establish guidelines for dividing income, investments, debts, and other financial considerations. Such clarity minimizes the potential for financial disputes and ensures a more straightforward resolution in the unfortunate event of divorce.

In cases where both spouses are involved in a business, a prenup can outline procedures for business continuity in the event of divorce. It can establish protocols for the transfer or buyout of a spouse’s interest in the business, allowing for its uninterrupted operation. It also acts as a means to protect the company’s intellectual property. Entrepreneurs often possess intellectual property rights crucial to their businesses, such as patents, copyrights, or trademarks. A prenuptial agreement can expressly protect these valuable assets, ensuring they remain under the exclusive ownership and control of the creator.

At Schlun & Elseven Rechtsanwälte, our lawyers offer guidance about prenups in Germany. Our team will outline what is permitted under German law and examine current prenups to determine their legal enforceability. We are also prepared to draft a comprehensive agreement tailored to individual needs and ensure compliance with legal requirements. A carefully crafted prenuptial agreement can provide entrepreneurs and self-employed individuals a level of security and certainty, offering peace of mind amidst the uncertainties of marital life.