A shared business can make a divorce complicated. Not only are the people married and seeking to end their romantic relationship, but they are essentially business partners who have been working together, potentially for years or even decades.
The shared business is likely a marital asset, meaning that it goes through property division. Below are three options couples can consider.
Both of them sell the business
To start with, many couples just decide that they are going to sell the business together and then split up the proceeds. They do this because it is the simplest option. If the business is worth $1 million, for example, they are both entitled to a portion of that value, and selling the business means they can just split up the financial assets that it creates.
One of them buys out the other
In other cases, one person may want to stay and continue running the business going forward. To do so, they may need to buy out the share of the business owned by their partner.
They both retain the business
Finally, selling the company is not a requirement just because a couple is getting divorced. Some couples go through an amicable divorce process where they are still on good terms, even though their marriage is ending. It may be possible for them to both continue working together, even after the divorce has concluded. In this case, they truly do become business partners, and they may want to write a contract, such as a business partnership agreement.
Every situation is unique, but this helps to outline some of the options you have if you own a business with your spouse and are moving toward divorce. Be sure you know exactly what legal steps to take at this time.
