The assets that you acquire during a marriage must be split if you divorce. Many people think about ones like their house or the family vehicles. But, what about the family business? You and your ex need to discuss the fate of the business so that you can get the plan in motion.
There are a few options that you have for doing this.
- Leave the business as-is: If this option is chosen, both spouses need clear roles in the company and a pay structure must be established.
- One person buys out the other: This leaves the business solvent, but it takes away the stress of you and your ex having to work together at the company.
- Sell the business: Selling the company allows you and your ex to split the profit from the sale after the company’s obligations are taken care of.
- Close the doors: If the company can’t be sold and neither party is retaining ownership, the business can close. Assets are liquidated and debts are paid. Anything remaining after that could be divided.
You have to think about how each option might impact you so that you can determine which one you think is best. In some cases, discussing the decision with employees might be necessary. Make sure that you discuss this with your ex.
Ultimately, the fate of the business is only one aspect of the property division matter. Ensure that all the terms are clearly conveyed in writing in the settlement. This takes the guesswork out of determining what’s supposed to happen. Just make sure that it’s all documented in accordance with the agreement you worked out with your ex.
