Going through a divorce is a rough experience for anyone, but it can be especially challenging for business owners. This is because one of the things they’ll have to do is determine what’s going to happen with the business. For some, this is the most difficult part of the property division process.
Unless there is a prenuptial agreement in place that addresses what will happen to the company in the event of a divorce, you will need to address this issue. There are a few options that might be viable for dealing with your business during your divorce. These include the following:
- Run the business as co-owners: You’ll need a detailed agreement on how duties, liabilities and profits will be handled.
- Sell the business to a third party: A proper valuation and plan to split the profits from the sale of the business are needed.
- One spouse buys the other out: This requires enough assets or cash to make the buyout possible.
- Close the business: Often a last resort that’s only considered if nothing else is possible or if the company wasn’t doing well before the divorce.
The business is only part of what you’ll have to divide in your divorce. You also need to think about the marital home, vehicles and other assets. Coming to an agreement about everything can be a challenge.
Your attorney can help you to evaluate the options that you have throughout the divorce. This can help you to think about how the various options might impact your future. It’s best to think about the long-term implications of every option that’s possible.