Joint business owners, such as a husband and wife who started a family business together, do need to address their company if they decide to get divorced. Since they both own the company, it is one of the most valuable assets that will need to go through property division.
This can certainly complicate their divorce case and related areas of their lives. One of the most common ways to address it is to sell the business. Many couples will sell their company and then split the money that they earn. This gives them a clean break once the divorce has concluded, and it satisfies the requirements for dividing marital property.
That said, selling the business is certainly not the only option.
Obtaining full ownership
For instance, one spouse may decide that they want to keep the business themselves, becoming the sole owner of that company. This is often possible if they buy out the ownership percentage held by their partner.
For example, if a business gets a valuation of $200,000 and the couple also fully owns a home with the same value, these are both valuable assets. One partner may agree to exit the business if they are allowed to keep the family home, while the other gives up their claim to the house and becomes the sole owner of the company.
Continuing to work together
A less common option is that divorcing spouses do not actually have to change anything about how they work together at the company. They can still be business partners. Even after the divorce, there is nothing legally prohibiting them from continuing their professional relationship.
Naturally, though, this can be hard for couples who are going through a high-conflict divorce. It may also mean they have to take additional legal steps, such as drafting a partnership agreement to define their new ownership percentages, roles within the business and things of this nature.
If you and your spouse are joint business owners who are facing a divorce, it is natural to feel concerned about the future of the business. Be sure you know exactly what legal options you have.
