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Valley Family Law Firm Well-Practiced In “Double Divorce”
Many Divorces Include The Bedroom and The Business

SCOTTSDALE, Ariz. (August 15, 2006) – When marriages involving joint business ventures turn sour, leading boutique family law firm Nirenstein Ruotolo Group (NRG Family Law), says its all about putting your head where your heart is.

Today, about 64 percent of all marriages in Arizona end in divorce, according to the Committee on Human Resources for the Arizona House of Representatives, including an abundance of relationships where personal and professional interests have overlapped, resulting in the separation of not only a family and a home, but of joint business assets and rights.

Noting a recent increase at his practice in divorcing couples who have shaped their lives not only around each other, but around a joint business, Alexander D. Nirenstein, managing partner and founder of Paradise Valley, Ariz.-based NRG, said the “double divorce” often leads to an intense struggle for the business to outlive the relationship.

“It’s no secret that a divorce affects more than the two people divorcing. Children, in-laws, friends and joint business ventures are also impacted by separations,” said Nirenstein. “In most instances, a couple with shared business rights will certainly not conduct ‘business as usual’ following a separation.”

With Arizona having one of the highest divorce rates in the country, according to the U.S. Census Bureau, Nirenstein says the most important move a couple who is either contemplating sharing business rights, or is already in a joint business venture, should make to protect themselves and their business is to establish a solid shareholder’s agreement with a buyout provision. An agreement of this sort can also be included in a prenuptial agreement.

“Creating this type of agreement beforehand not only reflects open lines of communications, but it shows that each party has the best interests of their relationship in mind,” said Nirenstein. “This is not always the most attractive item to discuss for newlyweds or more established marriages, but it can save you from added heartache and headaches.”

Catering to extremely high-net-worth clients, Nirenstein says NRG has seen its share of high-profile Valley couples who are not legally prepared when a business and personal relationship heads south, often leaving both parties in a state of emotional and financial panic as to who is entitled to what.

One particular state law that often takes divorcing couples by surprise is Arizona’s community property law. This law states that regardless of who is primarily running the business on a daily basis, both parties are entitled to an equitable share of the business, which is usually 50 percent. Further, should the couple not want to remain in business together, it then becomes a matter of negotiation as to who will get the business, who will get the home and how much, if any, one party may have to pay the other from business revenues.

So what’s a couple to do who’s on the brink of a “double divorce”? Nirenstein said understanding state divorce laws, establishing collaborative negotiations amongst financial planners, CPAs and business lawyers, along with divorce lawyers, is often the best place to start to ensure all parties are in full understanding of the couple’s personal and financial situation as it relates to the divorce.

NRG has offices in Paradise Valley and Tempe, Ariz. and hosts the state’s family law blog at www.azfamilylawblog.com.

About Nirenstein Ruotolo Group P.L.C. (NRG Family Law)
Founded in 2003, the Nirenstein Ruotolo Group P.L.C. (NRG Family Law) has grown to be Arizona’s largest family-law firm. Recognized nationally as the Southwest’s most prestigious boutique family-law firm, NRG’s attorneys have represented both prominent social figures and celebrities in some of the most complex and highly litigated divorce, property separation and interstate and international child custody cases. With a renowned team of 9 family lawyers, two litigation analysts, eight paralegals and support personnel, NRG takes a group approach to each case, offering the legal experience and expertise needed for extremely high-net-worth disputes. As a public service, NRG also hosts Arizona’s only family law blog at www.azfamilylawblog.com. For more information on NRG, visit www.nrglaw.net.

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