Divorce is relatively common in the United States, as is small business ownership. Many of these small businesses are owned by couples. A married couple may run a fast food restaurant together, for example, or they may have a consulting company. Some of these businesses have many employees and complex operations, while others are just run by the couple themselves.
Either way, getting a divorce is going to be a bit more complex when a couple owns a business together. Here are three options that you may want to consider if you are in this situation.
Selling the business
The first option is to sell the company. After all, the business is a marital asset, so it has to be split up between both owners. Selling the business to a third party turns that asset into cash, which is easier to divide.
Working together
In other cases, business owners just redefine their relationship. You could use a partnership agreement to officially become business partners with your ex after the divorce, for instance. If you are on good terms, you could then keep working together. This may be attractive if the business is highly successful and you don’t want to jeopardize it.
Buying half
Finally, there is sometimes the option for one partner to buy out the other. They may give up other assets in divorce. For instance, your spouse may let you keep the family home if they’re allowed to take on full ownership of the business – or vice versa.
Every case is unique, of course. This is why it is so important for business owners to know about their legal options when getting divorced.