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How to handle a divorce well when you own a business together

On Behalf of | Sep 8, 2022 | High-Asset Divorce

Breaking up is hard to do, especially when you also share a business in California. If you and your spouse are both business owners, deciding how to handle things during the divorce can be tricky, but that doesn’t mean it’s impossible.

Separate your business and personal finances

Many couples commingle their business and personal finances, but this can make untangling your finances during the high-asset divorce more difficult. If you have a shared business, it is important to keep your business and personal finances separate. This will make it easier to determine what is marital property and what is not if you decide to sell the business or divide it in half.

Get a valuation of your business

If you are not sure how much your business is worth, it is a good idea to get a professional valuation. This can also help to ensure that you and your spouse are on the same page when it comes to dividing up the company assets, for instance. Sometimes one spouse may think the business is worth more than it actually is, which can lead to a heated disagreement.

Communicate with your spouse

If you and your spouse are still on good terms, it is important to communicate with each other about what you want to do with the business. If you are hoping to keep the business, be sure to let your spouse know. You should also be prepared to explain why you think keeping the business is a good idea. If you want to sell the business, be sure to let your spouse know that, as well.

Ultimately, it’s possible to negotiate a fair settlement that works for both parties. However, it’s important to be prepared before starting any business discussions. Just remember to try to keep an open mind and be willing to compromise. After all, the goal is to come to a mutual agreement.