When you go through a divorce, the value of the assets acquired during the marriage has to be calculated, which includes a business. If only one person in the marriage operates or runs the business, it’s often awarded to the person who manages it. If both spouses are involved in the operation of the business, one of the parties can choose to buy out the other party to own the business in its entirety.
What to do with your business if going through a divorce
After you file for divorce, you’ll need to consider what will happen to a business you own with your spouse. You can consider buying out the other party or selling it to them if they want to own it. This requires the business interest to be valued to determine how much money must be paid. In some cases, both spouses may agree on the value of the business. You can also consider owning the business jointly if you can remain amicable after the divorce is finalized. Both spouses can also choose to sell the business and divide the profit. Co-ownership of a private business is a less common option. A formal written agreement must be created to ensure co-ownership details are laid out to avoid miscommunication and to protect both parties.
Who can you contact for legal assistance?
If you need assistance navigating divorce while owning a private business, contact an attorney to learn your rights and determine the different options available. The legal professional can inform you of the pros and cons of each option and discuss the details of the situation before agreeing to a specific plan or strategy. An attorney can also discuss how you plan to divide other assets you share with your spouse.