Kermit and Miss Piggy and Kermit call it quits personally – what happens to their business?
Kermit the Frog and Miss Piggy are one of a number of celebrity couples who have recently announced their separation.
In a joint statement, released Tuesday 4 August 2015, Kermit said “After careful thought, thoughtful consideration and considerable squabbling, Miss Piggy made the difficult decision to terminate our romantic relationship.”
Whilst this is a publicity stunt, it does focus attention on what happens when couples separate, and have a joint business or enterprise from which they both derive income.
It is often the case that parties have a small business together, and upon separation, there is a dispute as to who, if anyone, keeps the business.
The court won’t make a decision as to who keeps the business, should there not be an agreement, and will simply order the business to be sold and the proceeds divided in accordance with the principles of the Family Law Act. Alternatively, if one person keeps the business, it’s likely that it will be considered a financial resource, and taken into account when dividing the other assets and liabilities.
The courts are generally reluctant for parties, if they hold joint assets, including the business, to continue those interactions moving forward. The Family Law Act itself indicates that the purpose of court intervention is to resolve all property matters between the parties – not to make them financially dependent on the other.
Whilst Miss Piggy and Kermit will continue to work together on their television show, this level of communication and interaction will undoubtedly be difficult and the Courts are at pains to reduce this type of dependence.
If you own a business with your spouse, and wish to seek further advice regarding the division of your assets, please speak to a lawyer who specialises in Family Law: