As a family law practitioner at Child Custody Law Services, your legal training can be used to contemplate and understand the complexities involved in relating to business broker agreements. In Pakistan, individuals involved in establishing a business or have been involved in co-owning a business enterprise, may decide to hire the services of a business broker to assist in the buying or selling of a business. When you have the legal expertise, it is easier to comprehend what such an agreement entails and how it may have financial implications with regards to a child custody settlement.
The definition of a business broker agreement is as follows; A business broker agreement is a business contract established between an individual and the business broker. The key components of the business broker agreement comprises of the term, fees, exclusivity and confidentiality required for the services of the business broker. Even if a business broker agreement appears fairly straightforward, there are legal technicalities and implications associated with such an agreement. As they are involved with the buying and selling of businesses, a family law practitioner would need to assess how the business broker agreement may relate to the laws of family succession in Pakistan. In cases where the brokerage is selling the business and its assets, does the seller receive a portion of the assets? In addition to the monetary value of the business broker agreement, there may also be laws involved regarding the sharing of profits and the allowance of children to receive special monetary benefits from the sale of the business. Such financial concerns need to be addressed comprehensively with the business broker prior to establishing a business broker agreement.
When you are dealing with a child custody settlement negotiation, you need to be well-versed with the idea of family business succession planning and the relationship with a business broker agreement. For instance, if a couple has established a business and one parent decides to sell it and move away from the province, the other parent may want to gain sole custody of the children. This means that the family law practitioner may be required to assess how the origin of the business and the reasons for its sale, may relate to the custody of children. Does the sale of the business have any potential liabilities? How will the business sale affect the previous owner of the business and the beneficiaries? Will a proper arrangement have been provided for the financially dependent spouse of the business owner? Such factors are critical to keep in mind when proceeding to have a mutually beneficial family business succession plan established.
When a business broker agreement leads to a custody settlement, there may be financial implications that the family law practitioner needs to keep in mind. Consider the following example: A couple has two children and one business. The business is owned by the father but is run independently without any involvement of the mother. When they decide to separate, the mother is unable to retain contact with her children when the father decides to leave the city. The business is owned solely by the father as he purchased it independently, taking loans for the full amount of the purchase. But now the mother wants to ensure that the children get sufficient support from the business sale or the business’ profits, even if the sale takes place years later. Therefore, you may need to contemplate how the earnings of the business will be shared with the children in such a case. Alternatively, if the mother decides to sell her half of the house and take it to court for a custody settlement, you need to determine how to distribute the sale amount of the home.
Being a family law practitioner, it is not your primary concern to prepare a legal due diligence for the families entering into a business broker agreement. But the implications of such an agreement could have a significant impact on your practice. For instance, if the family business has been very profitable, the non-owner spouse maybe able to finance their own home and move out of state with the children. However, what happens to the share of the children, if the other parent has the ability to offer better living conditions to the children with the business profits? You may also need to consider the implications and expectations of the business broker when handling the negotiation for the custody arrangements. This is where the financial aptitude of the family law practitioner comes into play. You may need to help the children make decisions about what they want the future life to be like. If they are too young, you may need to lead the children to make positive and constructive decisions. You may need to educate them about the value possessions and how to reallocate their focus towards their aspirations instead of the possessions. Then, you may need to go beyond the standard requests and have them consider how the family can continue thriving by realizing their full financial potential.
The financial dispositions established in a business broker agreement may have a significant impact on the custody settlements. Consider another example: The mother and father have a joint house and two children. The father is earning a good salary from his corporate job while the mother is not currently working and looking after the children.
The children are young under the age of 5. The alienation of affection lawsuit becomes prominent and the father decides to sever all ties with the mother and take her to court for periodic and primary periods of custody. The mother does not want to stay in the same house with the father thus she requests to sell the house and divide the money in an amicable manner. She needs to provide a good life and livelihood to herself and children while giving them the roots they require to establish for themselves. The father is adamant that he will remain in the house until he can buy the children’s half. He has other properties where he can potentially relocate but he does not want to leave the children behind. The mother agrees to sell the house and has already begun viewing properties for her and her children. But when the father finds out about this he instantly refuses to cooperate.
When you are working on a case where a business agreement sale has taken place and there are cash flows or cash inflows or outflows, the family law practitioner needs to assess how the distribution of those cash inflows will take place. Did the business owner need to take loans to build the business? Did they have to pay hefty interests charges for the loans? Will the business owner be paying off their debts for a number of years? This is where the family law practitioner can bring their knowledge of loans, interests, repayments and debts to work.
Family law practitioners involved within businesses also need to address the queries of the business owner to be able to limit opportunities for regrets later such as; What legal advice does the business owner require for their business to become a profitable venture? What kind of contract or agreement should the owner have with the brokerage firm to diminish any loopholes in the agreement they sign?