Starting a business with your spouse may have seemed natural and simple when you were married. You were already spending much of your time together, and your finances were commingled, so becoming joint business owners made sense.
Unfortunately, you and your spouse have now decided to get divorced. You’re concerned about what the end of your marriage will mean for your company moving forward. What options do you have?
You don’t have to change anything
To start with, remember that you don’t necessarily have to change the way you run your business. Perhaps you and your ex can draft a partnership agreement and officially become business partners, even after the divorce. If you’re still on relatively good terms and believe you can work together, the business can continue operating as it did while you were married. Don’t assume you need to make any drastic changes.
Selling the business
One alternative is that you and your ex could sell the company. Since it’s a marital asset, it needs to be divided between the two of you. One of the simplest ways to do this is to find a buyer for the company and then split the proceeds from the sale. The downside is that you lose your business, but you may be able to use the money to start another one.
One of you moves on
Another option is for one of you to leave the business while the other buys out their ownership share. How realistic this option is depends on various factors, such as the cash available and the total valuation of the business. It also depends on whether one of you believes you can successfully run the business without the other.
Navigating the process
No matter what option you choose, being business owners can make your divorce more complex. Take the time to carefully explore your legal options and make decisions that work best for your personal and professional goals.