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Ways to split a business during divorce

When going through a divorce, state law demands that all community property get divided in a way that is equitable for both parties.

This also applies to businesses, which are unfortunately and notoriously hard to divide due to the many complexities surrounding them. Fortunately, there are still many common methods of handling business in divorce that can make things easier.

Buy-sell agreements

Forbes talks about dividing a business when divorcing a business partner. First, you can buy out the portion of the business owned by your spouse. From that point on, you can continue to run the business on your own. This is often a good option if one spouse holds a bigger share of the company, or if one created or owned it before the marriage.

Going for a joint sale

A joint sale is another good option. With this, you and your spouse will come together and sell the business jointly. You then split the proceeds between you. If you each have an equal stake in the business or if you founded it together, this is a good option.

You will have the assets and freedom needed in the aftermath to pursue any solo business adventures you might want to embark on, which can make the emotional aspect of letting go of a business a little easier, too.

Finally, there is the option of continuing with a business partnership even after a divorce. This is a less popular method for obvious reasons, but some ex-couples can still make it work.

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