You and your spouse are joint business owners, and you have been working together for years. However, your spouse recently filed for divorce, and now you are wondering what that is going to mean for the future of your business.
Because the business is a marital asset, one tactic people sometimes use is to sell the company. They then take the proceeds from that sale, pay off any outstanding financial obligations and split up the money that remains. This is one of the most straightforward ways to address marital property division, but it is certainly not your only option.
Trading other assets
For instance, maybe you want to keep the business, but your spouse is willing to leave. You can then buy out their share in the company and become the sole owner.
One way to do this is to give up other marital assets. Say that the two of you have retirement savings with roughly the same value as the business. You could keep the company but give up a claim to the retirement fund, which your ex keeps. This way, you have still properly divided assets overall, and you become the sole business owner.
Working together
Finally, do not forget that you and your spouse can continue to work together, even after the divorce.
This is not for everyone. It often depends on whether you are on good terms or if it is a high-conflict divorce. But there are certainly divorced couples who simply draft an official partnership agreement and continue working as business partners long after their marriage has come to an end.
No matter what tactic you decide is right in your situation, a divorce involving a business can be more complex, and it is critical that you understand your legal options.