An Advocate In Family Law Cases

Will divorce also end your family business?

On Behalf of | Jun 6, 2024 | Property Division

Divorce is going to end your marriage. You’ve known that since your spouse asked to split up. You’re going to start a new chapter in your life, and you need to divide your marital property as you do so.

For some types of property, this is simple. You can divide a bank account in half and deposit the money in new accounts. But other assets are much more complex. For instance, perhaps you and your spouse are family business owners. Does the divorce mean that your business is also going to end?

You have a few options

There are numerous options you can use to address a business during divorce. First off, some couples will sell the company and split up the money. This would be the end of the business for you, but you could also use that money to start a new company.

Another option may be for one of you to buy the other person’s share in the business. If your spouse is interested in selling or trading other marital assets, you may take over as the business owner. You could give up your right to a retirement account, a family home or something else with similar value to half of the company. 

Finally, you and your spouse could keep working together. If you do, it may be wise to draft a partnership agreement. But you can legally get divorced and end your marital relationship, while still maintaining your business relationship and working together.

Working through the process

This gives you an idea of some of the options you have and how complicated this divorce process can be. It’s important to know what steps to take.