The intensity of a small business divorce cannot be overstated. Feelings are hurt. Trust is betrayed. Years of dreams and ambitions, once shared, are dashed upon the cold, hard rocks of self-interest and anger. In the wake of the bitterness only one thing remains: dividing up the money.

The fight to divvy the assets, shift obligations, and ensure peace can be savage. In trying to settle that melee, the parties will turn to every “trick” in the book to seek revenge and, perhaps, incentivize the other side to honor the terms of their latest and last contract (having felt that the offending party never honored the prior commitments). Parties often turn to a liquidated damages provision as a means to “carrot” and “stick” each other into compliance with their final promises to one other.