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Do you have to sell your business in a divorce?

On Behalf of | Jun 10, 2024 | Divorce

You and your spouse are family business owners, and so that business is one of the biggest assets that you own. It’s also your source of income. It’s a very valuable financial asset that can determine what your future looks like after the divorce.

You may be assuming that you have to sell that business during the divorce. After all, it doesn’t make sense to split up the tangible assets. So the only way to divide the business between the two of you is to sell it to someone else and then split up the money. But is this actually your only option?

2 other choices

Selling is certainly one option, but it’s not the only one. For one thing, you could buy your spouse’s share of the business, or they could buy yours. There are many divorce cases where one person wants to keep working at the business and the other is willing to move on.

You may be able to buy that share directly, taking a loan and paying your ex. But you may also want to consider trading assets, like giving up your claim to the family home.

Finally, if you and your spouse are still on good terms, you could just draft a partnership agreement and become business partners after the divorce. If you do this, you don’t have to sell the business at all. You just redefine your relationship and continue working together. Naturally, this won’t work for all couples, but it is a viable solution for many.

Considering your options

These are just three things to consider when getting a divorce, but they help to show how important it is to know exactly what options you have and what legal steps you can take at this time.