Getting a divorce is difficult enough as it is. If you own a business with your spouse, things can get even trickier. You’ve worked so hard to get your business up and running and the thought of it coming to an end isn’t nice to think about. However, you still have to deal with the changes that divorce can bring. So what do you do? There are three ways you can deal with this situation an each come with their own advantages and disadvantages. Here’s an overview:
Continue to Run the Business Together
The idea of maintaining a business relationship with an ex-spouse may sound awful to many people. However, the arrangement can work for some divorced couples. If you and your ex-spouse are on good terms and respect one another, you may be able to run the business together with no issues. By deciding to own the business together, the two of you get to keep your interest in the company and you don’t have to go through the hassle of a valuation of your business.
However, if you and your ex-spouse have ill feelings toward each other, this arrangement probably won’t work. If you don’t get along with your ex at all, you may not trust him or her to do what’s best for the business and will have difficulty working together.
Purchase Your Ex-spouse’s Half of the Business
If you and your ex-spouse can’t continue to run your business together, you’ll have to divide so that each person gets a fair share. The first step is having a business appraiser determine the value of your company. It’s an expensive process, but you can save a few bucks by hiring just one appraiser to do the valuation.
Once the value of your business is determined, you can buy out your ex-spouse’s half of the business or utilize the other assets for a fair exchange. Understand that you will need to get together a hefty sum of money to buy out your ex’s half. On the other hand, if you’re not interested in running the business anymore, your ex can purchase your half and you’ll have more money in your pocket.
Sell the Business
If neither you or your ex-spouse is interested in keeping the business, the best thing to do is sell it. If you decide to go this route, you will still have to hire an appraiser to figure out how much your business is worth. If someone buys the business right away, you will both receive money and can do whatever you want with it. However, if it takes a while for the business to sell, understand that you’ll have to be around your ex for a longer amount of time.
Whether you choose to continue running the business together or selling it, you should hire experienced family lawyers in Tampa, FL to help you through the process.
Thanks to The Mckinney Law Group for their insight into family law and divorce involving a family business.