When two people start the process of going through a divorce, their expenses are always going to be intertwined to some extent. However, when they own a business together and need to go through the process of splitting this up, things are inevitably going to be more complicated.
It is likely that after you divorce, you will not want to keep running a business with your ex spouse. If this is indeed the case, then you will have to go through the process of dividing up the business.
Your options when dividing a business through divorce
There are several ways that you can go through the process of diving up your business in the event of a divorce. In one instance, one spouse can buy the other out of the business. This would be a great option if one of you is more emotionally invested in the business that the other.
Another option is for both of you to get a fresh start by selling the business on to another person. If this for some reason is not possible or is proving to be a lengthy process, then you can alternatively close the business and move on with your lives.
Things to consider when deciding how to move forward
It’s important to remember that if you decide to sell the business, it can take a very long time and it may prevent you from fully finalizing the divorce and moving toward the future post-divorce.
An attorney and financial advisor can help you are concerned about how to deal with your jointly owned business in a divorce.
Source: Investopedia, “How to Divide a Jointly Owned Business in Divorce,” accessed Dec. 15, 2017
