Many small businesses in the United States are owned by couples. In many cases, couples will get married, one of them will have a business idea, and they will engage in the joint venture together. They are both equal owners of the same business.
When going through property division during a divorce, though, these couples can run into some issues when splitting up assets. They both own the business, making it a marital asset. But how do they address it properly?
It is certainly true that one option for them is to sell the business. This can make things easier because then all they have to do is split up the money they earned in the sale. But are there any other options?
Taking over as the sole owner
What happens in some cases is that one person wants to stay at the business and become the sole owner, while the other is content just to get their money out of it and move on. The spouse who wants to keep the business can buy out their partner’s share. If they have the financial assets to do so, they can simply buy it directly. If not, they can sometimes give up other assets, like homeownership or a retirement plan.
Continuing to work together
Another option is for the couple to keep working together, even once their divorce has been finalized and they are no longer married. If they are on relatively good terms, they may be able to shift into a new relationship as business partners. It can sometimes be wise to draft a partnership agreement.
If you and your spouse are going through a divorce and trying to determine what to do with high-value assets, be sure you understand your legal options.