People often think of legal matters as issues that are very separate and that operate largely on their own. While this can be accurate — someone suing over a defective product injury certainly may not have any related lawsuits or legal steps to consider — the truth is that things often overlap.
For instance, it’s true that money trouble often leads to divorce. This could mean that a business owner who is facing bankruptcy could also find themselves in a divorce case. They then have to consider not just the impact that all of this has on the company or on their career, but on their personal life. They have to think about how their business issues may impact their ability to pay child support, for instance, or how a busy schedule as they try to save the company can impact their child custody options.
It could even go beyond that. Perhaps the person in question is thinking about their estate planning and how to pass their assets to their heirs. They expected to pass the business on down as one of their major assets.
Well, now they have to think about the type of bankruptcy they use. Will they liquidate their assets and close their doors? Are they hoping to sell the company? Are they going to use something like Chapter 11 bankruptcy to restructure their debt and keep the company running? The option that they choose, and the outcome of that case, now has a major impact on their estate planning.
Plus, since they’re facing divorce, they may also be thinking about losing personal assets and/or updating their estate plan to reflect the reality of being single again. Maybe they assumed their spouse would run the company or they had a plan to sell it and leave that spouse the money. Now they want to consider giving control to an adult child or setting up a trust to hold assets for a child who is a minor.
This is just one example, but the key is to remember that many legal areas are actually closely related. They all impact one another. If you’re facing a situation like this, you have to know exactly what steps to take along the way.