Options for business owners during divorce 

Options for business owners during divorce 

On Behalf of | Jan 27, 2023 | Complex Property Division

Family businesses are incredibly common in the United States, and many of these businesses are owned by married couples. In a lot of cases, these people had already gotten married and then decided to branch out and start a business together so that they could change the course of their joint careers.

But what happens when that marriage ends? If the couple decides to get a divorce, what are they supposed to do with their business? Here are a few options:

Continue working together

First off, always remember that you don’t necessarily have to change your business structure at all. The two of you can still be business owners and work together even though you are divorced. Couples will simply have to have personal conversations to decide if they think that this is possible for them in their specific situation.

Sell the business

In some cases, couples will decide to just sell the business, especially if the valuation is much higher than what they have invested in it. They can then take the earnings and split them, just as they would when selling a home or another major asset.

Buy out your spouse

Finally, in some situations, one spouse wants to continue running the business and the other would prefer to sell. Both of these things are possible if the spouse who wants to keep the business simply buys the other person’s half. The hurdle here is that it can be financially difficult and may require business loans or other forms of capital.

Business owners who are going through a divorce need to make sure they are well aware of their legal options.