Plan carefully for the family business during divorce

| Jan 31, 2021 | Divorce

There are many decisions that have to be made when you go through a divorce. Things like property division and child custody might come to mind. If you have a business that you own with your spouse, deciding what to do with the family business when you divorce is another one that you have to make.

You and your ex will have to work together to determine what’s going to happen to the business. A few options are possible, so it’s best to explore them all. Consider how each of these will impact you, as well as the employees of the company if there are any.

Keep, close or sell the business?

Your three main options are to keep the company, sell it to someone or close it. If you sell it, you need a plan for how you will handle the profit. If you close it, consider how the liabilities will be handled and determine whether there is a profit to split.

If you opt to keep the company open, you and your ex will have to determine whether you will run it together or if one person will buy the other out. This is often a challenging decision. Either way, you need to ensure that you have everything regarding the decision spelled out in writing. This means outlining the buyout if one person is buying out the other or laying out the roles of each person if you’ll run the company as a team.

Discuss your situation with your attorney, so you can determine what you want to do about each aspect of the divorce. Carefully consider each option you have, so you can do what you feel is in your best interests.