If you and your spouse are business partners facing divorce, among your major concerns is no doubt the fate of the company.
The business will likely become the focal point of the property division phase of your divorce. Here are three options for you to consider:
1. Decide on a buy-out
Although you and your spouse are partners, one of you may have more time and effort invested in the business. Therefore, this may be the right time for a buy-out of the other party’s share. First, an appraiser must perform a valuation so that you know what an appropriate selling price would be. Consider that if the buyer does not have the funds, the seller may agree to accept an asset of comparable value.
2. Put the business on the market
You could also sell the business outright, in which case you and your spouse could split the profits, go your separate ways and even start other ventures with the proceeds. A valuation is also needed for this option to determine the selling price. Keep in mind that you may not find a buyer right away, in which case you and your spouse would have to maintain your business partnership a little longer.
3. Continue as partners
Finally, depending on your post-divorce relationship, you may consider keeping the status quo. If you believe that you and your soon-to-be-ex can continue working together peacefully and effectively, this could be the perfect solution. It would also be the least expensive solution since you would not need a business valuation.
Plan on a team effort
The disposition of a family business can be a complex effort. You may need to add an accountant and a financial advisor to your team, which may already consist of the appraiser and the attorney who handles your divorce and keeps you from making any missteps in this important aspect of the property division process.