What to Do with Your Family Business During Divorce

Running a business with your spouse can be difficult even if your marriage is going well. It is even worse when you are on the verge of divorce. Not only are you breaking up your marital union, but you must figure out how to deal with the business.

You may have concerns about your company failing due to your divorce. However, that does not need to happen. It is possible for your business to survive and even thrive after you and your partner part ways. Here are some methods for dealing with the family business during a divorce.

One of you buys the other one out

If you do not want to run the business together, one way to manage the situation is for only one of you to keep the business. In order to do this, you will need to hire a business appraisal expert to determine the value of the business. The valuation can be costly, so it is in your best interest to split this expense with your spouse.

Once you know the value, one of you can buy out the half of the business belonging to the other spouse. Another option is to offer other assets in exchange for half of the business. If you want the business, you will likely need to sacrifice a decent amount of funds or assets for it.

Sell the company

Another strategy is simply selling the business and dividing the profits with your ex. You also need a valuation to accomplish this. However, this can be a difficult decision if you have a lot of emotions and finances invested in the business.

Work together

If you think you and your ex will continue to be respectful and professional, you can consider continuing to run the company as partners. A divorce does not necessarily mean you need to stop doing business together, but it can be too hard for some people to manage.