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What are the options for a business in a divorce?

On Behalf of | Nov 17, 2022 | Family Law

If you own a business, it is an asset that is up for grabs in a divorce. You may have to make difficult decisions in order to keep the company.

The Street notes that the only time you would not have to involve your business in the divorce settlement is if you had a preexisting agreement of some type to protect it. Otherwise, you have limited options.

Sell the business

One option you have is to sell the business. This will allow you to split the proceeds with your spouse. It is usually the easiest option but is not ideal if you want to keep the company. In addition, not every business is something you can sell. For example, if you are a dentist, the dental practice relies heavily on you offering the services. The only possible buyer would be another dentist.

There is another option for selling where you retain your part of the business and your spouse sells his or her part. This would open you up to having a partner who you probably will have no say in choosing. It could be a headache, but you would be able to retain your business.

Buyout the business

If you want to keep the business and the control over it, then you could buy out your spouse’s portion. This solution may not work for everyone because you would need to have the money to do it. However, you may also be able to negotiate the buyout using other assets you own. For example, you would retain your business, and your spouse would get the family home.

Dealing with a business in a divorce can add to an already stressful situation. But there are options to consider that can allow you to reach a desirable outcome.