Do you own and operator family business? Maybe you and your spouse got married and then decided that you would work together and launch a business, knowing that you had complementary skills and would work well together. As a result, you are now both equal co-owners of the same company.
This works well when you are still married, but what if you’re getting divorced? What happens to the business?
You can sell it
The first option is to sell the business. Find a third party who will purchase it, split up the money from the sale, and move on after the divorce. Both you and your ex will leave the business, but you will be compensated and you can divide this compensation along with your other assets.
You can keep working together
Another option is to change nothing, save for perhaps creating a partnership agreement. The two of you can get divorced and keep your business, working together as business partners. You don’t have to sell the company just to divide assets.
You can buy half
If you would like to keep the business but your ex doesn’t want to continue working with you and would rather leave, then you do have the option to buy their share. You may want to find investors or take out a business loan to make this purchase. You may also consider giving your ex other marital assets in exchange.
These are your three basic options for a business during a divorce. Make sure you know what legal steps to take at this time and how to protect the assets you deserve.
