You and your spouse are considering a divorce, and you know it is going to be complex because you are also joint business owners. You have both worked together for much of the duration of your marriage, and you both own the company.
In this position, you will need to determine exactly how you are going to divide equity in that business, since it is a marital asset. There are three general options to start with.
You can sell the business
First and foremost, you and your spouse could simply sell the business outright. The proceeds from that sale are then a marital asset, and you can divide them appropriately. In many ways, this is the easiest option, but it does mean that you lose the business you have built – and your source of income.
One of you can remain at the business
If you do not want to lose the company, but your spouse is willing to walk away from the business, another option is to buy out their ownership share. You may have to give up other marital assets that you have a right to, such as a family home or a retirement account. Or you may be able to take out business loans and purchase their share from them directly.
Both of you can keep working together
Finally, it is always important to remember that you do not necessarily have to change anything with the business just because your marriage is ending. You can still work together as business partners. This works well for some couples, though not for others, so every situation is unique.
Business ownership can certainly complicate the divorce process. Be sure you are well aware of all of your legal options at this time.
