It is already difficult enough to disentangle assets during a divorce. This is even more true when it comes to couples that own and run a business together.
How do business owners handle the dissolution of their marriage?
Forbes discusses ways to lighten the blow of divorce on a business. Generally speaking, three primary options exist when it comes to lightening the blow of divorce.
First: it is possible for one spouse to buy out the other’s share in the business. This is often a good option if one spouse holds a larger share or if the other spouse joined later, and the couple did not start the business together.
Joint sale of a business
Second: the spouses can jointly sell their business. With this option, any profit generated from the sale of the business will end up split equally between the two. This is a preferred option in cases where the couple starts the business together, or when they each have an equal share of the business or business assets. It also allows for a couple to start new business ventures once they split.
Continuing to run it together
Finally: in some cases, a couple may continue to run their business together even after the divorce. This is rare for obvious reasons but may happen if the couple divorces amicably. However, some changes to the official language of business documents may need to happen to accommodate for the changes in marital status.
It is important to choose the option that seems like it will suit each unique situation the best.