During a marriage, running a family business may seem both convenient and natural. You and your spouse understand each other, you know what skills the other person has, and you are able to work together on a daily basis.
But what if that marriage comes to an end? If you decide to get a divorce, what happens to the business that you own together?
Marital property division
The issue you are facing is that the business is marital property, so it does have to go through property division. You both have a right to it. One way to address this is just to sell the business to someone else because you and your ex can then split up the money. This satisfies the property division requirements.
However, you may not want to lose the business, and it might be possible for the two of you to keep working together after the divorce. This still satisfies marital property division. You may need to take some additional steps, however, like drafting a partnership agreement as you redefine your business relationship.
If you believe that it would be too difficult to work with your ex after the divorce, then there are also options for one of you to buy out the other person’s share. The person who does so becomes the owner, and the person who is exiting the business receives a financial payout to make up for the portion of the company that they previously owned.
No matter what option you decide to use, it is important for you to understand exactly what legal steps to take as you navigate this complex process.