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Buy-sell agreements function like a business prenup, addressing key decision-making processes among partners—such as issues requiring a majority (51%), supermajority (75%), or unanimous consent. These agreements are also important for managing employees with equity and ensuring employee retention. They clarify procedures for third-party purchasers and contingencies like death, disability, bankruptcy, and divorce. Notably, in certain states, equitable distribution laws may allow spouses to claim a significant portion of a business's value during divorce, regardless of differing expert valuations, potentially leading to a 50/50 split enforced by the court.
