Divorces can become even more complicated when the married spouses also share a business partnership. If the divorcing spouses decide that they cannot run the business together after the divorce is complete, usually one spouse will try to buy out the ownership interest of the other. Assuming the other spouse is willing to take the sale, there are a number of ways a business owner in St. Charles County can seek to purchase a spouse’s ownership stake.
Per Inc.com, one option is to buy out your spouse with a share of other marital assets. These may include using stocks, real estate, a retirement account, or cash. If you do not have enough capital to match your spouse’s price, you can also consider negotiating away some assets in exchange for a lower price. For instance, if you own a boat that you know your spouse has an eye on, consider trading it to your spouse.
Sometimes it is not possible to raise the money right away for a purchase. Some couples in this situation will opt for a property settlement note. In this scenario, you would take out a loan of the amount you owe your spouse for your ex’s share of the business. This option allows you to pay your former spouse off over time. Taking this route will cost you a little more because you must pay interest, but it also keeps your business in operation.
Unfortunately, not all couples can come to a buyout agreement, or the circumstances will not allow for one spouse to gain full ownership of the company. Because of these factors, couples may just sell the business and split the proceeds. While many people may not want to give up their business, the money derived from the sale may still give someone a chance to start over again with a new business someday.
This article is written to inform people in St. Charles County about property division issues resulting from divorce. Do not interpret it as legal counsel for your particular situation.