A family business that supports your household is likely a source of pride. Everything with the company might seem great, especially when the marriage is going well. That business can become a source of contention, however, if your marriage starts to go south.
Unless there’s a prenuptial agreement regarding the family business, that company will likely be at the center of the property division process. You must ensure that you do what you can to protect it if this occurs.
4 options for the family business when the owners divorce
There are four primary options for the company that you should consider. Think carefully about how each of these will impact you. Of course, you’ll have to discuss this with your spouse.
- Sell the business: A family business that’s well established might be sold, but you’ll have to determine how to split the profits from the sale.
- Continue to co-own the company: You and your spouse can continue to own the company together after the divorce. However, getting a written contract that covers responsibilities, payments, and similar matters is critical.
- Initiate a buyout: One party can buy the other out, but you’ll need an accurate valuation and a plan to make this happen.
- Close the business: Closing the business may be necessary if none of the other options are viable.
Protecting your interests is your priority during a divorce. It’s imperative that you work swiftly to determine what options you have and how each of those impacts you. Having experienced legal guidance can help you achieve your goals throughout the divorce.
