Getting a divorce is rarely a simple process that hundreds of thousands of adults face every year. This may be their first divorce for many of these people, leading to many initial questions about property division.
Dividing your assets is rarely easy, but knowing what will happen to your business during your divorce is a different matter entirely. There are typically three primary outcomes that a business can experience in a divorce.
Buyout
If one spouse decides they do not want to keep their share of the company, they may sell it to the other spouse. The exchange can conduct as a straight purchase, or the selling spouse may use their share of the company as a resource during negotiations. To conduct a sale or purchase of a portion of the company, it is common that the spouses will need to get an appraisal of the company to determine how much each share of the company is worth.
Total sale
If the spouses cannot agree to the sale or purchase over their share of the company or if neither spouse wants to continue owning their claim of the company, both spouses selling their share may be the best option for them. Dividing the money from the sale may reflect the percentage of ownership each spouse had, or they may come to another agreement during negotiations.
Co-ownership
If both spouses want to keep their share of the company, they may choose to do so. While the ownership of the company may stay the same, the business performance may not. It is not uncommon for one spouse to decide that they want to take a minor role in the oversight of the company and remain to collect their share of the income.
Pursue the outcome you want
If you are a business owner facing divorce, consult with an experienced divorce attorney to discuss what you can do to try to achieve the outcome you want for your company while also protecting your best interests through your divorce.
