Family business owners sometimes find themselves in a precarious situation when the business is owned by a married couple. What if that couple decides to get a divorce? Is the business in jeopardy?
There are many different solutions that people can use, but let’s take a look at the three most common ones below.
The couple sells the business
In the first option, the couple simply sells their business. They have to divide their assets during the divorce anyway. Selling the company gives them both an influx of cash that they can divide. They may each use this money to start their new lives, perhaps by starting a business on their own.
One person sells their share
In a lot of cases, both people don’t want to give up the business. One partner wants to keep it. It is certainly possible for the other partner to sell their share. The person acquiring that share – and becoming the full business owner – may use other marital assets to make this purchase. But they may also need business loans or other sources of funding.
They keep working together
Finally, don’t assume that the couple would even have to sell the business. They can still be co-owners and work together. It just depends if they can put their personal feelings aside. Some couples can and some can’t, so everyone needs to make this decision for themselves.
No matter what they decide, this is going to be more complicated than running a different type of business. It’s important for all involved to understand exactly what options they have and what legal steps to take.