Few marriages become as tightly entwined as those relationships between business owners. If you and your spouse have a partnership in a business, you need to consider how you will handle the business in the divorce.
There are a few different choices available to you depending on your specific situation.
Is the divorce amicable?
If you and your spouse still work well as business partners despite not being good romantic partners, you might decide to retain your partnership and sustain the business as it is. This is a common choice for successful, thriving businesses amidst an amicable divorce.
Can one of you afford a buy-out?
If you have a partnership, each partner’s vested interest is clear in the contract. Consider a commercial valuation to determine each party’s buyout amount if you feel the need to go separate ways. If one party can buy the other spouse’s interest in the business, or can find another partner, this may be the ideal resolution.
Should you sell the business outright?
Sometimes, it’s in everyone’s best interest to sell the business outright. Selling to an independent third party and then splitting the proceeds allows both of you to walk away from the partnership and move on.
Business partnerships and marriages can be a poor mix when you are facing divorce. Consider the solutions available for settling your business partnership, whether you can continue working together or not. The better informed you are about the options, the easier it is to establish the final agreements that you need.
