Jason Navarino, a partner in Riker Danzig’s Tax and Corporate Groups, was quoted in the April issue of Commerce Magazine. Jason provided guidance on prenuptial agreements pertaining to family businesses. He noted that “prenups are not always enforceable, and some family members (or their spouses-to-be) may refuse to sign one. To deal with this, I often draft call options into operating and shareholders’ agreements, allowing for the buyout of a spouse who ends up with an ownership stake post-divorce.” Jason explained, “The purchase price is set at fair market value, to be determined by appraisers, so as not to deprive the spouse of value.” He added, “But the price can be paid over several years (with minimum interest for tax purposes) to avoid a substantial and immediate cash hit.”
