The different options you have with a business during divorce

Lund Bennett Family Law - Cheshire and Manchester

Divorce can be a complicated and emotional process, especially when it involves a business. If you and your spouse own a business together, there are several options available to you during the divorce process. Here are some of the different options you have with a business during divorce:

  1. Sell the business: If you and your spouse cannot agree on how to divide the business, you may consider selling the business and dividing the proceeds. This option can be especially attractive if the business is profitable and has a high value.
  2. Buy out your spouse: If one spouse is more invested in the business than the other, or if one spouse wants to continue operating the business, they may consider buying out the other spouse’s share of the business. This can involve a negotiated buyout or a court-ordered buyout.
  3. Co-own the business: In some cases, it may be possible for both spouses to continue co-owning the business, even after the divorce. This option can work if the spouses are able to communicate effectively and work together to manage the business.
  4. Divide the business: Depending on the nature of the business, it may be possible to divide the business into separate entities, with each spouse owning a portion of the business. This option can be complex and require legal and financial expertise to execute properly.
  5. Dissolve the business: If the business is not profitable or has a low value, it may be in both spouses’ best interest to dissolve the business and divide any assets or debts associated with the business. This option can be a last resort and may require court intervention.

It’s important to note that the options available to you may depend on the specific circumstances of your case, including the size and value of the business, the level of involvement of each spouse, and any existing legal agreements or contracts related to the business. Consulting with a qualified divorce attorney and financial advisor can help you determine the best course of action for your situation.

In conclusion, divorce involving a business can be a complex and challenging process. However, by considering the different options available, including selling the business, buying out your spouse, co-owning the business, dividing the business, or dissolving the business, you can work towards a fair and equitable resolution that protects your interests and helps you move forward.