Many family-owned businesses are started by couples. In the beginning, the couple is often very excited to launch their new business and put their vision into action. They also enjoy being in control of their own finances, as the business is their main source of income.
But this can complicate things when a couple decides to get divorced. Below are three different options to consider for the family business.
1. Continuing as joint owners
First and foremost, many people assume they are going to lose the business in the divorce. But that does not have to be how it plays out. It is completely legal for two people to continue being joint business owners, even after their marriage has ended. This may be too emotionally difficult in some situations, but couples who are going through an amicable divorce may simply choose to keep working together.
2. Buying half of the company
In other cases, one spouse will simply purchase the ownership shares from the other. This could even be part of property division. Maybe one spouse wants to take the retirement and savings accounts, and they are worth roughly as much as half of the business. The other spouse becomes the sole business owner.
3. Selling the company
When all else fails, there is always the option to sell the company outright. If the couple finds a buyer, they can split the money they earn in the sale. They could stand to earn a substantial amount, depending on how much the company has grown during their marriage.
This process can be complicated, and it’s very important for couples to know what options they have and what legal steps to take.