Whether you own a general store, a bakery, or anything else, the small business you built is something you are proud of and work hard to protect. When you start the divorce process, you may not know how it can affect your business. You may have a lot of questions about how your assets will divide in your divorce, including your business. Here are the common outcomes of a family business in a divorce:
Buying the business
If one spouse is willing to give up their share of the company, they can part with it during the asset division process. After an accurate valuation of the company, the spouses can proceed with negotiations. A spouse can either offer their share in the family home, a cash value or make another offer in exchange for the other spouses.
Selling the business
If neither spouse can come to a purchase agreement over the business or wants to continue owning the business, they may agree to sell the company altogether. The spouses should be sure to get an appraisal of the company before selling it and dividing the assets.
It is possible for ex-spouses to continue owning a business together. The dynamic of their relationship may change after the divorce, and it can take time for it to settle. The involvement of each owner may not be equal, either. Once spouse may decide to hold a more passive position and allow the other to run the company.
Prepare for your plan
If you are going through a divorce as a business owner, make sure you are not overlooking your company. Consult with a divorce attorney who is capable of addressing the unique challenges of dividing a business to ensure you are defending your best interest.