In New York, it can be complicated to attempt to sell a business that is owned by a couple going through a divorce. The other person is still entitled to their share of the business, even if one of the spouses managed and owned it. The individual selling the business will need to compensate their spouse and split the value.
If one of the spouses doesn’t have ownership rights, the other party is free to sell it. In some cases, the other party can stop the sale of the business if they file a restraining order as the divorce is pending. The following provides additional info on businesses and divorce.
Can you sell a business during a divorce?
It’s possible to sell a business after filing for divorce, but the process is often lengthy and complicated because of the different factors involved. Both spouses are entitled to their share of the business, even if only one person was involved with its operation.
A professional appraiser will need to determine the overall value of the business to see how much needs to be paid to the other party. Additional factors will be considered, including the length of the marriage and each spouse’s income. The location of where you and your spouse reside will determine how much of the business you’ll need to split with your partner.
Who can you contact for legal assistance?
It’s important to consult the services of a legal professional if you plan to sell your business while going through a divorce. You may also need an attorney if you’re seeking your share of the business from your spouse or want to negotiate how the business is divided. A legal professional can inform you of your rights and strengthen your case to improve the outcome and help it to work in your favor.