After you married, you and your spouse became co-owners of the business you founded, and divorce was the last thing on your mind.
However, now that your marriage is ending, what will happen to the family business? Here are three options to consider.
Put the business up for sale
Over the years, the business you and your soon-to-be-ex built became increasingly successful. Therefore, one option is to put the business up for sale and split the profits. To do so, you must engage an appraiser to perform a valuation so as to establish the appropriate selling price.
Perform a buyout
A valuation will also be necessary if you decide on a buyout. If, for example, you have the greater investment of time and sweat equity in the development of the family business, you may want to purchase your co-owner’s interest. If you do not have the funds for the buyout, you could consider a suitable asset exchange so that you both realize your fair share out of the deal.
Continue as co-owners
If your divorce is more amicable than contentious, you and your spouse might consider continuing as co-owners. This is not the best course of action for every divorcing couple. However, if you and your spouse believe you can work together in a post-divorce world, this may be the ideal solution. There would be no need for an expensive valuation. The greatest benefit of this option is that in deciding to go forward as co-owners, you would each get to keep your respective interest in the family business you built together.