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What will happen to the family business in property division?

On Behalf of | Mar 5, 2021 | Family Law |

When you and your spouse took over the family business, you were perhaps newly married. It was an exciting time and you worked hard to make sure the business prospered. 

Now that you are facing divorce, what will happen to the business during the property division process? Here are three options to consider. 

Buy out your spouse

Perhaps your spouse is not as interested in the family business are you are and would consent to a buyout. You would first need an appraiser to perform a valuation in order to determine the selling price. If you do not have the funds available for the buyout, you could offer other assets of like value or even propose a payment plan. 

Sell the business outright

You may see the divorce as a good opportunity to put the business on the market. Once again, you will need a valuation in order to determine the appropriate selling price. Once the sale is final, you and your spouse can split the profits and go on with your lives. Keep in mind that if the business does not sell right away, the two of you may have to continue working together longer than you anticipated. 

Continue as co-owners

If both of you have an emotional attachment to the company, the final option is to continue as co-owners. There would be no need for an expensive valuation, and you would be able to keep your respective interests. Not every divorcing couple can go down this path. However, if you feel you can continue working together after the divorce, this would be the easiest solution as you face property division and the fate of the family business.