The outcome of a divorce can shape how the ex-spouses can live, how the children will develop, and what means that everyone will have to move forward. A divorce can impact more than a family; it can also determine what happens to the business that the spouses own.
There is a lot you should know about divorce, especially if you are considering one, or are already in the middle of one. When a business is involved in a divorce, one of the biggest concerns is who will own it afterward, but the answer may be up to you.
Potential outcomes for a business
When a business comes to the property division area of a divorce, three typical results can occur. Depending on the decisions the spouses come to, a company can undergo a:
- Buyout. If one spouse is willing to sell their share of the company to the other, they can arrange a deal for the sale to occur. After the exchange, only the purchasing spouse will have ownership over the business.
- Co-ownership. If both spouses wish to maintain their share of the business, they may do so. The involvement of each spouse may change, however. One spouse may step back from any direct participation and collect their share of the income while the other spouse takes on more leadership decisions.
- Sellout. If neither spouse wants ownership of the business or if the spouses cannot reach an agreement regarding the other two options, they may agree to sell the business and collect their share of the profits.
A spouse can enter the division negotiations with one of these goals in mind, and leave the negotiations satisfied with a different result.
Protect your best interests
No matter what option you are pursuing regarding your business in your divorce, negotiating without an attorney present is a mistake. Lawyers know how to help reach an agreement swiftly and efficiently, and they know how to finalize the decision you and your spouse agree upon.
While your business can experience several outcomes, you can help guide it to the one you want the help of an experienced divorce attorney. Please contact our office with your questions or concerns regarding your case, especially if a business is involved.