It is not uncommon for a married couple in New York to own and operate a business together. The pair might have been married before they formed the business or they may have been business partners who eventually became romantically involved. Either way, there are unique benefits and challenges to running a company with the person you are married to. One of the challenges arises if you end up separating and divorcing from your spouse.
As explained by Forbes, along with deciding who will get the house, when you will each have time with your children, and other matters, you must now also choose what to do with your joint business. Like family homes, some businesses end up being sold to third parties when the owners get a divorce. The proceeds of the business then must be addressed as part of your asset and debt division agreement.
If you do not want to sell your company altogether, you must decide if you can continue to work together as business partners or if one of you will keep the business alone. In the case of the latter scenario, you will need to pay special attention to the valuation of your business as this will directly impact how much one person must pay the other for the company.
If you would like to learn more about how to identify the best solution for your business when you and your co-owning spouse are getting a divorce, please feel free to visit the marital split and company future page of our New York family law website.