When a couple owns a business together, they both likely play an integral part in keeping it operational. They both put in hard work and a lot of hours to help the business to remain successful. It’s not a pleasant thing to think about, but a couple that’s considering divorce will have to determine the fate of the company.
There are a few options that they can explore for the family business. Taking a look at the circumstances and being realistic about what’s possible may help them to determine how to proceed.
Options for the business
Some people opt to sell or close the business because of the divorce. It can be challenging to find a buyer for some businesses, so that may not be possible.
One spouse may buy out the other’s share of the business. This would mean that the business is only owned by the buying spouse so the other spouse won’t have any remaining interest in it.
Another option is to continue operating the company as it is, with both spouses continuing as partners. This is only a viable option if both spouses are able to keep their work duties completely separate from the personal battles that occur with their divorce. A comprehensive partnership agreement is critical in these cases.
The family business is only one consideration that’s present when a couple ends a marriage. Being able to look at the property division situation objectively may be beneficial so they can each make decisions that are in their own best interests.