For many years, you and your spouse essentially had two relationships. On one hand, you were a married couple. On the other, you were joint business owners, working together to run the family business.
But now you’re getting divorced, and you’ve been looking into your options. You know that you could sell the business to someone else entirely, giving you and your ex a chance to simply split the proceeds. But that would mean losing your source of income and everything you’ve worked for. You also know that you could buy out your ex’s share in the business and become the owner, but that may not be financially viable. So, can you keep the business together even after you get divorced?
Redefining your relationship
First and foremost, yes, this is possible. You don’t have to sell the business or buy out your spouse’s share. If the two of you agree to it, it still satisfies property division if you simply keep working together as business owners.
However, many couples who work together will skip other important steps that business partners would otherwise take. For instance, you may not have drafted a partnership agreement, defining things like how much money you earn, how business decisions should be made, what ownership percentage you have in the business, and things of this nature. But after the divorce, you may need to do this just to make sure you’re both on the same page and avoid future legal complications.
Divorce for business owners can be complex, but it is possible, so just be sure you know what legal steps to take.
