A divorce is something that you may never have expected for your marriage, which is why you may be shocked at how much it can upset your life. Hundreds of thousands of people get a divorce every year, and they all go through the processes of asset division, custody agreements, and child support and alimony negotiations.
Some couples have to go through the added difficulties of deciding what to do with their family business. There are several different outcomes the company can experience because of divorce, so here are the common outcomes to consider if you are a business owner facing divorce:
If one spouse is willing to give up their share of a business, they can use it as an asset for property division or simply sell it to their spouse. In either case, it is essential to get an accurate business valuation before committing to any decision.
If neither spouse is looking to part with their share of the company, they can continue owning the business together. While ownership may stay the same, it is possible for the responsibilities each spouse has in the company to change. For example, one spouse may decide to take a “silent partner” role and allow the other spouse to run the business while collecting their income share.
If both parties cannot agree to the terms of sale, are comfortable with co-ownership, or neither spouse wants to run the business, they may decide to sell the company. Divorce negotiations can shape how the proceeds of the sale divide between both parties, and a business valuation would be in everyone’s best interests as well.
Protect your best interest in your divorce
If you are a business owner trying to navigate your way through a divorce, let an experienced family law attorney guide you through the process. A good lawyer can help you decide what outcome you want to pursue in your divorce, develop a strategy to achieve that outcome, and help you execute the plan. By remaining flexible in your divorce, you can earn the outcome you are looking for in your divorce as a business owner.