Owning a running a business calls for a considerable amount of time and energy. After everything that you have put into your business, you should prepare for what can happen to your business in your divorce. There are several outcomes that a company can face when one of the owners is getting divorced.
Like any other area of property division in a divorce, property division involving a business can be tough. One way of preparing for these negotiations is by having a particular goal in mind. Here are the three most common outcomes in a business that faces property division:
If both spouses each have a claim to a portion of the company, one spouse can buy the other’s piece. After agreeing on a fair value for the share, a spouse can purchase that share or exchange it with other marital assets during property division, like offering their share of the house or boat.
If both spouses want to keep their share of the business, they can certainly do so. In this outcome, things may or may not change in the dynamic of ownership. In some cases, a spouse may decide that they no longer want to run the business, but would instead continue collecting their share of the income.
When neither spouse wants their share of the business or cannot agree to another option, they may both agree to sell their shares. After they sell their shares, they then properly divide the income.
Consider your options
If you are facing a divorce as a business owner, know that you can influence the outcome your business faces. Consult with your divorce attorney about how you can prepare your business for divorce, and earn the result you need.