When Business Partnerships End – How to Survive a Business Divorce

Wheaton small business attorneysBusiness partnerships can end for all sorts of reasons. One of the partners may have a shift in their personal needs or goals (i.e. having a family, wanting to change industries, etc.). Other partnerships end over a matter of contention (unprofessional behavior, poorly job performance, etc.). Yet, regardless of the reasons, ending a partnership can be a complex process, and there are numerous pitfalls that can cost one or both parties a great deal of money. Learn how to mitigate against such issues, and discover how a seasoned business law attorney can help you survive the end of your business partnership. 

Protecting Your Business Before the End of a Partnership

While partners do not typically enter a business together, thinking it will one day end, it is highly encouraged that they anticipate and effectively plan for its eventual end. Not only does this make ending the partnership easier, should the need arise, it can also protect the interests of the partners and ensure the continuity of the business. Additionally, partners are encouraged to revisit their original agreement when needs change or the company grows, as this can ensure the exit strategy always reflects the business’s most current goals, profits, and vested parties. 

Business Valuations and the End of a Partnership

While an exit strategy will typically address most matters involved with ending a business partnership, there are elements to the process that must still be completed. One such item is an accurate valuation of the business, which accounts for all the company’s debts, assets, and projected future profits. Partners are encouraged to seek their valuation from an appraiser that they can both agree upon, instead of just one partner simply choosing an appraiser, as this can minimize the risk of a slated valuation that benefits only one of the vested parties (i.e. inflating the company’s debts to keep more of the money within the business). 

Deciding How to End Your Business Partnership

There are numerous methods that partners can use to end their relationship, but most require that the business either buy out the exiting party completely or make scheduled payments at pre-determined times. Businesses that need to preserve money for growth or are still new may benefit most from scheduled payment increments. Those that have the ability to make a complete buyout may benefit more from simply dissolving the partner completely. In either case, it is critical that parties discuss their options and the potential ramifications with a seasoned legal professional, as there are pros and cons to each method. 

Contact Our Wheaton Business Law Attorneys

Whether you need assistance with developing an exit strategy at the start of your business or need help with dissolving a business partner, Stock, Carlson, Oldfield & McGrath, LLC is the firm to call. Backed by more than four decades of experience, our DuPage County small business lawyers work hard to protect the interests and financial futures of our clients. Start by scheduling a personalized, no-obligation consultation. Call 630-665-2500 today. 

Source:

https://www.entrepreneur.com/article/191782

 

Student Housing Market is Growing – What You Need to Know Before Investing in It

DuPage County real estate lawyersThinking of expanding your investment portfolio this fall? Student housing saw a 10 percent increase in value over the past year, even as several other commercial real estate (CRE) sectors experienced a decline. The student housing market is also projected to continue in an upward trend over the next several years. Learn more about how to invest this growing market, and discover how a seasoned real estate lawyer can help you make the first steps. 

Why Invest in Student Housing? 

Student housing is unlike any other CRE sector. It tends to be less volatile since students typically continue to enroll in college, despite (and sometimes because of) economic downturns. Another major advantage to this market is that students typically only sign year-long leases, so landlords can analyze the market each year and increase their rental rates accordingly. Since the rent costs are typically shared between roommates, landlords can also typically charge more per square foot in a student housing unit – especially if they are in a highly desirable location. Lease renewals may also be easier to obtain in areas nearest to campus since students often know well in advance whether they will be returning the following year. 

Student Housing Landlords Face Unique Challenges

Although there are many potential benefits to investing in student housing, landlords who invest in this market often face some unique challenges. While rent may be paid by the student’s parents (which often means consistent, timely payments), there are students who rely on financial aid for their housing needs. As such, the landlord may need to accommodate a tenant who pays their rent on a quarterly basis. Students may also return home for the summer, so they may not sign a full year lease, so landlords often need to prepare for a lag in the summer months. 

Maturing adults may also struggle with certain tenant issues, like calling in to let the landlord know that there is a leak. There could also be issues with noise disturbances with certain students. Landlords can attempt to mitigate these issues by being patient but firm about their expectations for student tenants. 

Breaking Into the Student Housing Market

Whether you want to take a hands-off approach to student housing and invest in an REIT or wish to purchase and rent student housing on your own, it is important to have seasoned legal assistance. With more than 40 years of legal experience, Stock, Carlson, Oldfield & McGrath, LLC can help protect your investment and advise you of your options in the student housing market. Call 630-665-2500 and schedule your personalized consultation with our DuPage County real estate lawyers to learn more.
Sources:

https://money.usnews.com/investing/real-estate-investments/articles/2018-08-10/take-a-crash-course-in-student-housing-investments

https://www.forbes.com/sites/bisnow/2017/07/10/these-two-public-reits-are-making-a-killing-in-student-housing/#46c6ed985eff

https://www.wsj.com/articles/u-s-commercial-property-values-surge-in-niche-sectors-1531825204

 

Estate Planning Basics: Choosing a Suitable Guardian for Your Children

Wheaton wills and trusts lawyersOf all the things that a parent must do, creating an estate plan that names a guardian for their children is, by far, one of the most difficult. That is because it not only requires the parent to consider the possibility of their death, it also requires the them to determine who may be willing, able, and best-suited to raise their child in their absence. Learn more about choosing a guardian to raise your children if a tragedy occurs, and discover how a seasoned estate planning lawyer can assist you with the process. 

Why Choosing a Guardian is Important 

Although most people know that life is unpredictable, they often want to avoid considering their own mortality – and that includes drafting estate planning documents like wills and guardianship papers. Other people simply get lost in their day-to-day lives and simply put off estate planning until “tomorrow.” Regardless of the reason for their delay, parents are highly encouraged to consider the potentially devastating consequences for their children. 

If a tragedy occurs and no will is in place, minor children and disabled adult children may be sent into the foster care system until a guardianship can be named. What is more, the courts typically allow any family member to bid for guardianship of the surviving children of a deceased parent – and that can include people who do not align with your values, religion, or parenting style. From there, the courts will make a determination, and they may use factors that seem irrelevant to you (i.e. annual income, age and overall health of the potential guardian, etc.). In short, parents who do not have a will are leaving the future of their children up to chance. 

Choosing a Guardian – Starting the Process

Only you can truly determine who may be best capable of loving and raising your children in the way that you envision. Perhaps you already have someone in mind, but you may also be struggling with the decision because there are multiple parties that would be suitable. If you are in the latter group, some of the following considerations may help you in making your decision:

  • Who might parent most like you?
  • How important is it that the guardian practice the same religion as you?
  • Are there potential guardians that share your values?
  • Is the potential guardian financially stable enough to care for your child?
  • Is the guardian capable of giving your child the love and attention they deserve?
  • Is the potential guardian mentally, emotionally, and physically healthy enough to care for your children?
  • Is there anything about the guardian that might negatively impact your child?

Keep in mind that you can choose alternate guardians, in the event that the guardian you choose is unable to care for your children upon your death. You can even create a succession plan if the first-chosen guardian passes away after taking guardianship of your children. 

At Stock, Carlson, Oldfield & McGrath, LLC, we understand that guardianship is a serious matter, as the possibility of your untimely death, and we can help you prepare for it all. Seasoned and committed to protecting the interest of your heirs and surviving family, we can help you consider all the potential scenarios and possibilities in your Illinois estate plan. Start by scheduling a personalized consultation with our Wheaton estate planning lawyers. Call 630-665-2500 today. 

Source:

https://www.forbes.com/sites/lizfrazierpeck/2017/11/28/how-to-choose-the-right-guardian-for-your-child/#12171b753d61