For many divorcing couples, the family home is the number one asset in terms of property division. However, if you are a business owner, your company will likely take that spot.
Here are three basic options to consider in determining the fate of your business.
1. Performing a buyout
Sometimes, one spouse has more emotional or financial attachment to the business than the other. Therefore, one of you may purchase the other’s share of the company. To do so, you will first need to hire a business appraiser who can perform a valuation to determine the proper selling price. If the funds needed for the buyout are not available, you could consider a suitable asset exchange.
2. Selling the company
Another option is to put the company on the market. That way, you and your soon-to-be-ex can split the profit. There are two things to remember in selling the business outright. First, you will once again need an appraiser to perform a valuation, and second, the company may not sell for a while. If this is the case, you and your spouse-partner may have to work together longer than anticipated.
3. Continuing as partners
Perhaps you and your spouse anticipate an amicable divorce, and maybe you have both contributed equally to the business’s success. If you feel that you can still work together in the post-divorce era, continuing on as partners may be your best course of action. You would not need to go through the expense of hiring an appraiser for a valuation, and you would each keep your respective shares of the business.
If you have devoted years to building your business and making it a success, perhaps you and your spouse cannot decide on the best way forward. You may also have concerns about the future of any employees you have. A team of professionals with the appropriate legal, financial and business knowledge can help you make the right choice. If your business is about to take center stage in your divorce, you want to make the best decision for everyone involved.
