Owning and operating a family business in Fort Lauderdale can be a lucrative endeavor and a point of pride and tradition. However, sometimes a couple’s marriage is not as successful as the family business and they will decide to divorce. If so, they will have to consider their various options for what to do with the family business in the property division process.
Option one: one spouse retains ownership of the business
Many couples in a divorce decide that only one of them will continue owning the business post-divorce. The business will be appraised, and the spouse keeping the business will buy out their ex’s share in it. If the spouse keeping the business does not have enough liquid assets to buy out their ex’s share, a structured settlement can be set up.
Option two: both spouses continue as co-owners of the business
If a couple is on amicable terms with one another, they may decide that they will both continue to run and own the business. While this may make financial sense and may work out if both parties have an emotional attachment to the business, it does take a lot of cooperation between spouses post-divorce.
Option three: both spouses sell the business and split the proceeds
Sometimes neither spouse wants to keep the family business. They may have independent endeavors they want to pursue, and they may want to make a clean break with one another. These spouses may choose to sell the family business and split the proceeds. Spouses should keep in mind that it takes time to sell a business, so they will have to work out how they will run the business until the sale is complete.
There is no “one-size-fits-all” choice
When it comes to the family business and divorce, each situation is unique and what works for one couple may not work for another. Ultimately couples will have to decide between themselves what is fair and right for their family business in a divorce. Family law attorneys in Florida can help couples with the property division process.