Five years ago, you and your spouse decided to start a small business in Michigan. It was very successful and it has become the main income stream for both of you. You both work at the company on a daily basis.
However, your spouse has now decided to file for divorce. You have many questions about how the process will play out, not least of which is what you should do with your business. Below are three options.
Keep working together
First of all, since you both own the business, you do not necessarily have to change anything just because you are getting divorced. You can still work together as business partners. Naturally, though, this only works in low-conflict divorces where couples are still on amicable terms.
Buy your spouse’s share
You may be able to buy out your spouse’s share of ownership in the business. Some people do this by bringing on investors or taking out loans. You may also be able to give up other marital assets, such as letting your spouse have the retirement account in exchange for their ownership share.
Sell to a third party
Finally, you always have the option to sell the business outright. If you and your spouse cannot figure out another solution but need to divide your marital assets, this is one way to do it. Depending on the value of the business, it could be a very lucrative sale.
Exactly what you do depends on your specific situation. Just be sure you understand all of the legal options you have as you go through the process.