Going into business with your spouse seemed like a good idea at first, but then your marriage fell apart and now your company might be at risk, too. However, just because your marriage did not work, that does not mean your business will fail, too.
But now that your marriage is over, what happens to the company you ran together? Fortunately, you have a number of options.
What are your choices?
Figuring out what to do with your business during a divorce can be complicated as there are a few different ways to do it.
- Continue to co-own
- Buy out your spouse
- Sell the company altogether
As with anything, each of these three options have their pros and cons. Some couples would not be able to continue to work together and co-own their business, but this may work for some people. This way, you both can keep operating and running your business without the stress of selling or negotiating. However, it could be difficult to continue to work with your ex.
Buying one partner out can be expensive, but will still allow you to own and operate your company. You can keep the business in the family and still have a clean divorce, at a cost.
Selling the company seems like a good option for some couples. You can split the resulting profit and move on with your lives, separately. However, selling a company can be difficult and you might not want to give away everything you’ve worked for in the business.
What should you do?
When deciding what to do you will want to carefully evaluate each of these options. It may take time to figure out what the best method is for you and it may help to get an outside or expert opinion. You should also hire a legal expert who can most accurately assess the situation.
Just because you and your spouse split, does not mean your business has to crumble. All of the above options could work, but it is up to you and your ex to decide what the best choice is for your situation. Dividing assets is complicated, and determining what will happen to a company, that you worked hard to create, is no different.
