When getting into marriage, every spouse does so hoping that the relationship will last till death. Despite the special bond built in the marriage, the couples may find it right that they get a divorce. New York has some of the highest rates of divorce in the country. Although divorce is a difficult time for you and your spouse, you need to protect your assets.
Often, couples have started businesses together. Although neither of them wants to let go, they must find an amicable solution. Here are the three options that couples who have businesses together have during a divorce:
Continue owning the business
In most cases, couples decide to continue owning the business mostly because it was the primary income source. The downside to this option is that you will always meet with your ex-spouse. However, this option is beneficial in a couple of ways.
First, both you and your ex-spouse will still get an interest in the business. Additionally, since each partner receives a percentage of the profits, there is no need for an expensive valuation procedure.
One spouse buys the other one out of business
The second option is where a spouse decides to remain with the business. Thus, they must buy the shares of the other spouse. Therefore, business valuation is necessary. Although this is an expensive procedure, the two spouses can share the processing costs. Apart from buying each other’s shares, you can also decide to exchange the shares for an asset.
Selling the business
Although businesses and divorce are compatible, selling the business may be right for you and your ex-spouse. Before selling, the company will be evaluated to determine its worth.
Are you planning for divorce but you own a business with your spouse? Contacting an attorney for guidance on how to manage the business may help you get the best solution for all parties.