A divorce brings a lot of change in the lives of a lot of people. Spouses who are parents have to learn how to co-parent with their now ex-spouse. Each spouse needs to adapt to their new life without their ex. For business owners, their business can experience considerable changes as well.
Dividing property in a divorce is a complicated matter on its own, but it can become much more complicated when a business is involved. The main goal of property decision negotiations involving a company is to determine the outcome of the business. There are three typical outcomes for a business that is caught in a divorce:
If one spouse is willing to give up their share or claim to a part of the business, they can sell it to their spouse. This exchange can occur as a purchase, or it can occur as a trade for something else during property division negotiations.
If neither spouse wants to give up their share of the business, they can agree to keep it. While ownership may stay mostly the same, the dynamic of the ownership may change. For example, one spouse may decide they no longer want to work with the other spouse, and they may remove themselves from the leadership position and collect their share of the income.
Selling the shares
If neither spouse wants to keep a share of the business, they may both elect to sell their share. The money from the sale will split between the two parties in a manner they both agree on. These funds can also become a part of the negotiations during property division.
Prepare for your desired outcome
While there are three typical outcomes that a business can experience in a divorce, the owners have the ability to earn the outcome they want. Consulting with an experienced family law attorney can help prepare yourself for the negotiations that may determine which outcome your business will result in.