What steps can be taken to prevent chaos when a relationship between a married couple, who are equal partners in a business with many workers on the payroll, turns sour and destructive, and they run into a cash flow problem, accumulate debts and prevent one another from drawing a salary?

Answers

One option within the framework of legal proceedings concerning property at the family court would be to join the company as a party to proceedings, as a preliminary step to the court appointing a special external manager for the company. This person could first try and create a settlement between the spouses/partners, or get them to co-operate, rather than continuing to behave destructively. Failing that he/she could draw up options to rehabilitate the company and make it more efficient one of which the court can choose.

Petach Tikva Family Court dealt with a similar but more extreme case recently, where a married couple who were equal shareholders in a company valued at over 15 million shekels with extensive property and employees were locked into a cycle of self-destruction. After joining the company as a party to proceedings and appointing a special external manager, in October 2018 the court chose one of three rehabiliation options proposed by the company for dealing with the crisis.

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