Couples sometimes decide to start family businesses together. Often, they bring different skill sets that make the business stronger. One spouse may be the creative force behind the business’s products and innovations, while the other spouse is good at advertising, networking and connecting with consumers.
This can make things complex if those spouses then decide to get divorced and the business qualifies as a marital asset. What options do they have?
One spouse can remain
One option is for one spouse to buy out the other person’s share and become the sole business owner. This may be worse for the company, however, as the other spouse’s skills and abilities are lost. It can also be fairly expensive to buy out someone’s ownership share.
Both spouses can remain
In other cases, both spouses can continue working at the business even after the divorce. This can cause some issues in a high-conflict divorce, however, making it hard for them to transition into a new relationship as business partners. Every situation is unique.
They can sell the business
If neither of the above options will work, the simplest option is sometimes just to find a third party who wants to buy the business. Once the couple has been bought out, they divide the money they earned from the sale. They may choose to use the money to start businesses on their own after the divorce.
These are just three options that couples need to consider as they determine how to split up their assets during a divorce. When the process gets complicated, it can help to work with an experienced attorney.