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Do you have to close your family business during a divorce?

On Behalf of | May 13, 2022 | Divorce

You and your spouse are going to get divorced, and it’s the end of your romantic relationship and your marriage. But you are also business partners, as you started a business together after you initially got married.

What you’re wondering about is if you’re going to have to close this family business just because your marriage is coming to an end. You may have been working at this for years or even decades. Does it all have to be lost simply because the two of you are not personally involved any longer?

You can still work together

You certainly don’t have to close the business, and you have the option to continue working together even after you get divorced. The business is a joint asset, so it would be subject to property division if you weren’t both going to keep it, but keeping it together means that you don’t have to do anything differently. If the two of you believe that you can get along and work together as business partners, you’re fully allowed to continue to do so.

Another option may be to offer to buy out your spouse’s portion of the business. This way, you don’t have to close it entirely or sell it to a third party, and you get to keep working there after the divorce, but your spouse still gets the money that they would have made in a sale and they get to move on to something new.

A complicated divorce

Divorce is often a bit more complicated for business owners, especially when they own the business together, so be sure you always understand your legal options.