You and your spouse, who are also joint business owners, have been talking about divorce. Finally, your spouse comes to you with the divorce papers and is ready to officially end the marriage.
During the conversation, they also note that it’s probably time for the two of you to put your business up for sale. It’s a marital asset, after all, so it has to be divided. Your spouse assumes that this means you’ll need to sell the business and divide any money that you earn in that sale. But is this necessarily true?
2 other options
You don’t necessarily have to sell if you’d like to keep the business. It is a marital asset, so it does need to be addressed, but there are many ways to do it.
For instance, maybe your spouse is happy to walk away from the business, but you want to keep it. At the same time, they want your retirement fund or your family home, which has a similar value. The two of you could simply trade assets back and forth during property division to ensure that things are fair, while you become the sole owner of the business.
Additionally, maybe both of you would like to keep working together. Perhaps you have a fairly amicable divorce and you understand the value you have to each other as business partners. You don’t have to sell the business at all, but can simply continue working together. You may need to make some legal changes, like drafting a partnership agreement, but selling is not mandatory.
The divorce process
Divorce with major assets, like homes and businesses, can be complicated. Take the time to carefully look into your legal options.
