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DIVORCE AND THE FAMILY BUSINESS
WE’VE ALL HEARD the family business statistics before, but they’re worth repeating. Approximately 80 – 90 percent of U.S. businesses are family firms.1 While many family businesses thrive in today's economy, life and personal relationships can take a turn and have an effect on you, your family, and your family business.
A family business tends to be the most valuable asset of a marriage. Typically, it is also inherently illiquid. That means that it is difficult to divide in a divorce without either having a divorced spouse as a partner or having a forced sale at potentially fire sale prices. Neither of these results is ideal, but if planning is not done in advance of a divorce (and ideally before the marriage), they could become reality under the equitable distribution rules applicable to divorce in most states.
There are various strategies and tools you can put in place to help protect yourself, your family, and your business, including setting up pre- and post-nuptial agreements, trusts and buy-sell agreements.
This column is sponsored by The Thornhill Wealth Management Group. Contact us today to learn more about how we can partner with you and discuss how we can help you mitigate life's circumstances that can affect your family's future. G. Conley Thornhill, CFP®, CIMA®, Senior Vice President-Wealth Management, or Eric E. Johnson, CFP®, CIMA®, Vice President–Wealth Management, can be reached at (863) 298-3600 or toll free at (888) 411-5049. Email Conley at conley.thornhill@ubs. com or Eric at eric.e.johnson@ubs.com.
UBS Financial Services Inc.
295 1st Street South, Winter Haven, FL 33880 ubs.com/team/thornhillgroup
BIO: Conley works with high net worth indi- viduals as well as institutional clients
by delivering highly customized
wealth management solutions.
FEATURE | equine
BEFORE YOU HIT
the Happy Riding Trail
What to Consider in a Horse for Recreation by ERIKA ALDRICH
MANY PEOPLE DREAM OF OWNING A HORSE, envision riding around trails, cleaning and currying and connecting with a noble creature that has shared a special bond with mankind throughout history. There are some important considerations you should factor in if you are thinking of buying your first recreation or pleasure horse.
In addition, in 2010 and 2011 he was selected as one of the Barron's Top 1,000 Advi- sor's. Conley Thornhill is a CERTIFIED FINANCIAL PLANNERTM practitioner and holds the Certified Investment Manage- ment Analyst® designa- tion.
by CONLEY THORNHILL
While the considerations for a rec- reation horse are not nearly those for a horse that you plan to race, breed, or ride in competitions, there are some impor- tant ones out there. The first is to really, honest-to-goodness examine whether you are able to adequately take care of a horse. Owning a horse requires a good amount of your time and money just for the basics. While the love of a horse is priceless, the cost of a horse has a dollar sign attached, and it’s a hefty one. All of those costs should be considered before investing in a recreation horse.
Those basic costs alone can add up quickly,so it’s vital to look at all options— such as taking riding lessons or “leasing” a horse at a stable— before taking the plunge and committing to a horse.
“It is important for potential owners to understand all of the factors that are involved in equine care. Costs include housing or stabling, feeding the horse, and providing routine hoof and veterinary care,” advises Dr. Amanda House, a clinical associate professor with the Large Animal Hospital at the University of Florida. Those basic costs alone can add up quickly, so it’s vital to look at all options— such as taking riding lessons or “leasing” a horse at a stable— before taking the plunge and committing to a horse.
Once you have decided that a horse is for you, you need to look at the nature and disposition of a prospective horse. According to Bridget Carlisle, UF/IFAS Extension agent, “Don’t get hung up on purchasing a horse of a certain age. Younger horses, if started right and the appropriate temperament, can be just as trustworthy as an older horse. Don’t negate a horse that you think is too old, either. Some recreational horses can be of service into their thirties!”
1J.H. Astrachan and M.C. Shanker, “Family Businesses’ Contribution to the U.S. Economy: A Closer Look,” Family Business Review, September 2003 (cited in Family Firm Institute, Inc., Global Data Points, http:// www.ffi.org/?page=GlobalDataPoints).
As a firm providing wealth management services to clients, UBS Financial Services, Inc. is registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer, offering both investment advisory and brokerage services. Advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures UBS provides to you about the products or services offered. For more information, please visit our website at ubs.com/workingwithus. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and Certified Financial PlannerTM in the U.S. CIMA® is a registered certification mark of the Investment Management Consultants Association, Inc. in the United States of America and worldwide. UBS Financial Services Inc. does not provide legal or tax advice. Any discussion of tax matters contained herein is not intended to be used, and cannot be used or relied upon, by any taxpayer for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or tax-related matter(s). Clients should consult with their legal and tax advisors regarding their personal circumstances. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC.
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