You and your spouse are heading toward a divorce, but you’re more than just married partners—you’re also joint business owners. A few years ago, the two of you started a joint business venture, which is the only source of income both of you have.
This can be worrying because you may think you need to sell the business during property division. And that is one option that you have. If you both have a right to the value of that business, selling it and splitting up the money you earn is one way to address this. But it’s certainly not the only option, so don’t assume this is what you have to do.
Buying your spouse out
Another option is to buy out your spouse’s ownership share, either by paying them cash for it directly—such as if you get a business loan—or by allowing them to have other assets. Maybe you have a valuation done and your business is worth $500,000. The two of you also have $300,000 in investments and a home that is worth $200,000. Your spouse may agree to take the investments and the house in exchange for ownership in the business.
Continuing to work together
For couples who are still on relatively good terms but just want to end their romantic relationship, it’s also possible to keep working together. If you decide to continue being business partners after the marriage ends, though, you may want to take steps to legally address this change. For instance, the two of you may want to draft a partnership agreement—a step that you may have skipped while you were married.
Every case is unique, but you can see why it’s so important to know about all the legal options at your disposal.
