Divorce not only brings changes to your personal life, but also to your working life, especially if you and your spouse are in business together. Your company is a major asset, important to both of you. What happens to it during the property division phase of your divorce proceeding? Here are three options to think about.
1. Sell to your spouse
You may want to get out from under the ongoing effort of business ownership. If so, you have the option of selling your share of the company to your spouse. Your first task will be to have an appraiser place a value on the business. Once you know what the company is worth, you can work toward a satisfactory buy-out. If your spouse cannot come up with the funds, one or more assets may come into play to make an even exchange.
2. Put the business on the market
You and your spouse could also agree to sell the business outright. Once again, you have to start the process with a valuation. You should also consider guidance from a team of professionals who provide legal, accounting and financial advice. You and your spouse could look forward to splitting the profit from the sale of your company, but there is one drawback: You would likely have to continue working together until the business sells.
3. Keep on as co-owners
If yours is an amicable relationship, you might want to consider continuing as business partners. Would you be able to work together after the divorce? If so, continuing as co-owners might be the best option, and you would not need to pay for a valuation from a business appraiser.
Pieces of the puzzle
Keep in mind that there are many parts to your business: inventory, equipment, facilities you may own and much more. In light of your divorce, your team of professionals will work to make the disposition of your business acceptable and fair to both you and your spouse, so you can put this matter behind you and get on with your lives.