Owning a business with your spouse does not always mean the marriage will be successful. Being a business owner is stressful and often comes with disagreements when you own it with a partner. A lot of people end up divorcing because of this stress. When this happens, both partners need to decide what to do with the business. There are three available options:
One Spouse Buys-Out the Other
A buy-out is a common way to divide a family business. If only one person chooses to continue running the company, they will need to purchase the other spouse’s interest in the company. The person keeping the business will need to afford the buy-out, with or without financing.
Both Sell the Business
Sometimes no one is interested in running the business, which means they can sell the business and split the profit. It may take some time to find an appropriate buyer for the company, and both spouses will need to agree on an offer.
Both Stay On As Co-Owners
While it is not as common, some spouses who divorce without drama or animosity may decide to continue running the business together. It does require a lot of cooperation and constructive communication. So if both spouses choose to stay on as co-owners, they will need to emotions aside and work together.
Getting divorced and need help with the process? Give Shaffer Family Law in Chandler a call at (480) 470-3030 to discuss your options and get started on your journey.