Business owners invest a lot of time, money, and energy into making their business a success. Despite all the effort the goes into a business, a divorce can drastically upset the nature of a divorce.
Divorces involving a business can be much more complicated than standard divorces. There are three typical outcomes to a divorce that a business owner can reach in a divorce. Knowing what options are available can better prepare business owners for their divorce.
When the spouse of a business owner tries to earn a portion of the business in a divorce, an agreeable outcome for each spouse can be a buyout. In this option, a spouse buys their spouse’s part of the company. Afterward, the spouse that sold their portion will no longer have any ties to the company. While this option gives ownership to only one of the spouses, it can also be the most expensive option for the business owner.
If neither spouse is willing to part with their portion of the business, they can maintain a co-ownership relationship. These relationships can function with both spouses being active in the business, or one spouse simply collecting their portion of the company while leaving the work to their ex-spouse.
Selling the business
A divorce may come to this decision because they cannot agree to the above options, or this option may be their first choice. This option involves both spouses selling the business, or their portions of it, and divide the income accordingly.
What is right for you?
It can be hard to come to the final decision of what to pursue in your divorce. An experienced family law attorney can offer perspective and guidance into what courses of action are available in a divorce involving a business.