A divorce can be an emotional and trying time. You have to consider several different elements, including finances and various financial contributors.
For those with a business, this can be more challenging than a regular divorce. It is good to understand and address a few key aspects in regards to your business during a divorce.
Dividing a business
For those who share a business with their ex-spouse, a few ways exist to possibly handle the business during a divorce. If the parties would rather not work together anymore, one party can buy out the other spouse, or both parties may sell the business. For those who have an amicable separation and can maintain a positive working relationship, it may be possible to consider running the company together. In such cases, it may be beneficial to get the new partnership terms in writing. It is important to note the selling process may take some time, as well as the reorganization for those who choose to keep the business. In addition, the business needs to go through a valuation process for proper evaluation.
Protecting a business
If one party built the business in partnership with others, and the other spouse did not contribute to the business, it may be possible for the spouse who is in business to protect the company. A common way to accomplish this is by having a buy-sell agreement in place before the divorce proceedings ensue. This can work for business owners who have business partners they can transfer their business shares and rights to. This helps to limit the number of business assets the court counts during the divorce process, as well as eliminate the other spouse's ability to seek further ownership of the company.
Considering these different aspects, and consulting with a divorce attorney, can aid you as you choose the best course for your divorce process. It may also be helpful to review the applicable divorce laws.