What Should a Buy Sell Agreement Include? Who can purchase. Who is allowed to purchase the departing owner’s share of the business is important for all business partnerships to determine. It is especially important in a business with married partners involved. For example, is it stipulated that the remaining spouse MUST buy the departing spouse’s share? Or, can any partner buy the open share of the company at that point? Or maybe it must be bought by someone from the outside. The more specific you are in setting this foundation, the better. Along the same lines, it is important that the remaining owner(s) have written validation that the departing owner did so voluntarily. If the remaining owner(s) fail to do so, the rest of the agreement may be void. This part of the agreement would also address compensation that will be paid to the departing party for their share of the business. How the appraisal is agreed upon. Clearly stating the method to come to an agreeable method of appraising the ownership interests will help smooth the process later. This appraisal will determine a fair price for the departing partners share, avoiding more complicated litigation. Depending on how complex of a business model you are working with, this appraisal may be made by a formula of revenue and assets, or it may require the hiring of a business valuation expert. Whatever method is used, it is better that before emotions are running high due to divorce, you have already agreed upon a fair method of valuation. It is often recommended that businesses owned by two or more parties do an annual evaluation, with this being used to determine the worth of the departing partners share. Conclusion By making sure a Buy/Sell Agreement is well written and covers all the potential pitfalls that could come up in a divorce or disinterest of a spouse, can save time and money. Save on the trouble and cost of litigation regarding a shared business! In the case of a divorce, this buy/sell agreement protects the assets from “double-dipping”, a term used to describe the practice of claiming assets multiple times under different headings. It also means it can’t be added to any other part of the case, including spousal or child support payments. If you are trying to navigate your way through a divorce where a business is also involved, Simon Law group can help! Call today for a free consultation. They can help you work your way through your divorce to make it go as smoothly and successfully as possible. Serving the Greater Phoenix area in the area of divorce and family law, Simon Law can be reached anytime day or night at 480-745-2450. Remember, experience matters!  ]]>