White and White Attorneys at Law
White & White Attorney

“During this time of emergency, our office will remain open servicing the needs of our community. Our office has the capability to perform consultations for new clients, meetings with existing clients, depositions, meditations and even Court hearings through live video or over the phone.”

Your business will be the focus among the assets in your divorce

On Behalf of | Nov 14, 2022 | Property Division

The family business will likely take the spotlight during the property division phase of your divorce.

The question is, what will become of the company you and your spouse built together? There are three basic options to consider.

1. Sell the company

Putting the business on the market may be the first option that comes to mind. However, you must first hire a forensic accountant to perform a valuation in order to determine the appropriate selling price. Keep in mind that if the business does not sell right away, you and your spouse might have to continue working together longer than you anticipated.

2. Buy out your spouse

A second option is to perform a buyout. If your spouse is not as financially or emotionally invested as you are in the business, this might be worth considering. Once again, you will need a valuation in order to arrive at an appropriate selling price. If you do not have the necessary funds, you can equalize the division by offering your spouse an asset that is similar in value. Your spouse might also agree to a payment plan.

3. Continue as co-owners

The third option is to keep the business in the family and go on as co-owners. Not every couple can consider this since there are difficult, contentious divorces. But if you and your spouse trust and respect each other and you are facing an amicable divorce, continuing as co-owners might be the best solution. There would be no need for an expensive valuation, and you would each retain your respective interest in the company.