White and White Attorneys at Law
White & White Attorney

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The fate of your business will be a property division highlight

On Behalf of | Aug 16, 2021 | Property Division

If you and your spouse have decided to end your marriage, does this mean an end to the family business, too?

Your business will be front and center during the property division phase of your divorce. Here are three options to consider in determining its fate.

Sell the business

Your initial thought might be to put the business on the market, split the profits with your spouse and move on. However, if the company does not sell right away, the two of you may have to work together longer than you anticipated despite the divorce.

Choose the buyout option

One of you could buy the other party out. This might be a suitable option if, for example, you have more sweat equity invested in the business than your spouse does. If the funds are not available for this process, you could offer assets of like value during property division or perhaps work out a buyout over time.

Continue as co-owners

You and your spouse may decide that you want to keep the business in the family. If you feel you can continue to work together once the divorce is final, this may be the best option of all. This is a solution that does not work for every couple; much depends on how amicable a divorce you anticipate having.

Prepare for valuation

Keep in mind that to sell the business or perform a buyout, you will need the services of a professional such as a forensic accountant. A valuation will be necessary in order to determine the worth of the business and the appropriate selling price.