Some couples jointly own businesses together, which can make a potential divorce more complicated. One option would be to sell the business. This makes it easy to split up the earnings, but it also means that the couple loses the company they built – which may also be their main source of income.
We previously discussed how some couples opt for joint business ownership, even after a divorce. They don’t have to sell the business at all, but can simply transition into a relationship as business partners. But there’s one other option to consider: Buying the other person’s ownership share.
Why would this be beneficial?
This is most useful when you don’t want to lose the business or your source of income, but there is also too much conflict in the relationship for you and your ex to work together. Unless it’s amicable and you’re on very good terms, working together after getting divorced may feel impossible.
Your spouse still has a claim to a percentage of that business, but you can buy them out in various ways. For instance, you could bring on an investor or take out a business loan and simply buy your spouse’s 50% of the company directly. Another option could be to surrender marital assets with a similar value. Your spouse gets to keep the retirement fund and the family home, for example, while you become the sole owner of the business.
Exactly what option you choose will depend on the unique situation that you’re in, but it’s important to know about all the options that exist and the legal steps to take at this time.