If you own a business with your spouse, things can get a little tricky once you start dividing your property in a divorce. The business, just like all your other assets, is something the court will want to split between the two of you, but that is not as easy as splitting a bank account. This is why you will have a few options for what you can do, and you have to choose one of them even if you do not really want to since the Iowa court will decide for you if you do not make your own decision.
Forbes explains your three options for dividing your business during a divorce is to sell out, buy out or work together. They may seem simple on the surface but each has its own pros and cons.
Selling out means that you sell the business and split the profits. This is probably the easiest option, but it means you lose your business. This may be something you cannot do or do not want to even consider.
Buy out is where you buy out your spouse’s half of the business. This would give you full ownership. However, your spouse must agree to this. Plus, you would have to come up with a fair valuation of your business, which can be tricky. In addition, you must come up with the money to pay your spouse, which can be tough in the middle of a divorce.
The last option is to continue running the business together. This might work if you are on agreeable terms and want to leave the marriage as friends. Otherwise, it could be pure torture. It really just depends on your relationship. This information is for education and is not legal advice.
