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What options are there for divorcing business partners?

On Behalf of | Oct 7, 2021 | Business Law |

You and your spouse are more than just a married couple. Shortly after getting married, you opened your own business together. You are business co-owners, both with a 50% stake in the company. You work together every day, though you do have a few employees, as well.

Now you want to get divorced. So does your spouse. Along with all of the traditional questions you have to ask about property division and child custody rights, what options do you have for your business?

Your business does not have to be part of the divorce

First off, your company doesn’t have to be part of the split, so don’t assume that it does. You can both stay on as business owners, with your 50% ownership, and keep on doing the same tasks. This is hard for some couples but, if you both want a divorce, it may work for you. You can absolutely split up the rest of your life and leave the business as it is.

Is it time to move on?

Another option is for both of you to move on. Maybe this is just the time for something new in life. You can find a third party and sell the company. That should bring in some revenue, which you can then split up with your other assets. If you’re interested in moving or just looking to reach another stage in your life, selling may be the way to go. It is also the easiest way to divide the business because you turn it into a cash asset, which is easy to split.

One of you could stay while the other leaves

If one of you still wants the business and the other doesn’t, you could consider buying the other person out. You can do it by taking out a loan and paying cash for their 50%, for example, or by negotiating with the other assets you own. Maybe you were going to get the house in the divorce, for instance, but you’re willing to give it to your ex in exchange for their half of the company.

No matter what you decide to do, just be sure you know what legal steps to take.