Top Six Mistakes Made In Corporate Divorces

Winding up a corporation can be as acrimonious as ending a marriage, and may be even more complicated and expensive. But it does not have to be—if you avoid these common mistakes.

6. Ignoring claims against the corporation

The end of the corporation does not mean the end of the claims against it. A corporation can still be sued after it is dissolved. A corporation's creditors can still seize the corporation's assets to satisfy their judgments, even after they have been distributed to shareholders. If there any outstanding or potential lawsuits against the corporation, you may wish to delay the dissolution of the corporation until they can be resolved, or to make arrangements to satisfy judgments issued against the dissolved corporation.