The more assets you have, the more complex property division will be during divorce, and your family business is likely to take center stage in the proceedings.
As your most valuable asset, there are three basic options to consider in determining the fate of the business.
You sell the business outright
The first option that probably comes to mind is simply putting the business on the market. To do so, you will first need to engage the services of a business appraiser to perform a valuation. Once you know the appropriate selling price, you can list the business for sale. Keep in mind that the business may not sell right away. This could prolong the divorce process and require you and your spouse to work together longer than you anticipated.
You perform a buyout
Perhaps your soon-to-be-ex is not as emotionally or financially invested as you are in the business. If your spouse agrees, you can perform a buyout. However, once again you will need a valuation to determine the worth of the business. It is customary for a buyer to transfer a lump sum to the seller in this kind of transaction. However, if funds are not readily available, you might consider giving your spouse assets equal to the value of the business.
You and your spouse continue as co-owners
Continuing as co-owners after divorce does not work for everyone. However, if you and your spouse anticipate an amicable divorce, this is certainly an option to consider. Of the three, it is the least complicated. You would not need an expensive valuation and you would each keep your respective interest in the business.
