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What should you do with your business for divorce?

On Behalf of | Oct 6, 2021 | High Asset Divorce |

You and your soon-to-be-former spouse not only built a marriage, but you also built a business. For your divorce, you must decide how to navigate your company together.

American Bar Association breaks down a few strategies for married couples with ownership interests in a private company. Understand which options serve you favorably for the next chapter of your life and your business.

Sell the company

If you and your current spouse agree, you may sell your business and divide the proceeds. That way, you can start another business without your marital partner. If your soon-to-be-former spouse wants your entity to continue, you may need a court order to move forward with the sale.

Buy-out your spouse

Perhaps you want to hold on to the business. If so, you may approach your current spouse about selling her or his business interest. This may work if your marital partner does not mind stepping away from the business entity to pursue something else.

For this option, your soon-to-be-ex may want to have a professional appraise the company’s value. If so, add the price of the valuation to the cost of your divorce. You may also want to talk to a financial professional about the taxes involved with a buyout.

Stay on as co-owners

Depending on how well you and your soon-to-be-former marital partner get along, you could remain co-owners. Think about how this option may affect you emotionally and mentally after your divorce. You could feel more comfortable with a work schedule that lets the two of you avoid each other.

Your business could serve as the largest asset in your divorce. You have options for protecting that asset and the hard work you invested into it.