The marital home is often the most valuable asset to consider when couples enter the property division phase of their divorce.
However, the most valuable asset you have might be the successful company you built. Here are three options to help you determine the fate of the family business.
BUY OUT YOUR SPOUSE
As co-owners of the family business, you and your spouse probably share responsibilities. While you run the day-to-day operations, your spouse might be the financial resource. Consider buying out your spouse’s interest. With this option, your first step is to engage the services of an appraiser who can place a valuation on the business in order to arrive at a fair selling price. If you are unable to raise the funding needed for the buyout, you can work out an asset exchange agreeable to your co-owner.
LIST THE BUSINESS
You and your spouse may prefer to put the business on the market. Once again, you will need a valuation; however, this option would allow you to sell the business outright and split the profits. One drawback is that you may have to go on working with your spouse until the company sells.
CONTINUE AS CO-OWNERS
If you and your spouse believe you can continue working together after the divorce is final, this might be the perfect solution to the dilemma surrounding the fate of the business. You would not incur the expense of an appraisal and you would both retain your interest in the company.
CONSIDER CAREFULLY
Deciding the fate of your business due to your divorce will not be easy. No matter which of the three options you favor, seek legal guidance before you make a commitment.