When a couple makes the choice to move forward with a divorce, both parties will experience changes in their financial lives. They may have to divide property and live with reduced income, but divorce can particularly difficult for people who own their own businesses. A North Dakota business owner going through divorce will not want to underestimate the potential impact family law choices can have on his or her company.
A family-owned or closely-held business can quickly become a source of contention in a divorce. A business owner may find that his or her share of a company could be considered marital property, and therefore eligible for division. Whoever the higher-earning spouse is on paper may have to pay spousal support, even if he or she puts a lot of income and personal profit back into a small business.
In some cases, a business may be able to buy out a partner’s share if it looks like his or her divorce could negatively impact a company. This is not possible in every situation, particularly if it is a sole proprietorship or business owned by two spouses. The potential complications can have a long-reaching effect, which is why it is important for a person to think carefully about the choices to be made during this time.
Family law decisions can impact everything from someone’s personal finances to the ability to continue running a North Dakota small business. While changes and adjustments are inevitable, it is still possible for a person to have a strong future. A smart and practical property division order can provide a way for a business owner to look toward long-term security with confidence.