Many couples opt to run a business together. Both spouses may share an equal workload, or contributions from one spouse can be more minor. In any case, involvement from both spouses in a business often entitles them to a share should a divorce occur.
Asset division, particularly regarding businesses, can be very complex. The business will have to be accurately appraised, and the financial and physical contributions of each spouse will need to be measured. In Florida, marital property is split equitably.
What are some potential options for dealing with the family business during divorce?
Sell the business entirely
In some cases, it just isn’t feasible for the business to continue operating under one or both spouses post-divorce. This makes selling the business entirely a viable option. The business will be valued, and placed on the market and the sales proceeds will be divided equitably between spouses.
A buyout
One spouse may have no interest in selling the company. If they want to continue to run it, and the other spouse does not, then a buyout is possible. The interested spouse will buy the other’s shares and take full or at least an increased ownership stake in the business.
Co-ownership
Sometimes, former spouses are able to remain amicable post-divorce. They can separate their personal history and focus on the business partnership. In such instances, continuing to run the company as co-owners may be possible.
These are just a few of several options for the family business during a divorce. To put a strategy in place, it will be helpful to seek legal guidance.