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Photo of attorney William Marcus Wilkerson
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Does a divorce mean selling a family business?

On Behalf of | Nov 14, 2023 | Family Law |

It is certainly possible to sell the family business during a divorce, and it is a rather common occurrence. After all, if a couple owns the business together, they need to divide assets. The best way to do it may be to sell the business to someone else and then split up the money that they earn in that sale.

But is this the only option? Certainly not. Do not assume that you must sell your business. Below are two other potential options to keep in mind.

Selling half of the business

First of all, you may find yourself in a position where either you or your ex wants to sell the business and split the money, but the other person wants to keep the business and continue running it. To them, selling would be highly detrimental to their career and their financial future. If you’re in this position, either you or your ex can buy the other person’s half of the business. This allows for property division because the person who wants to leave the business still gets the cash value of their ownership percentage.

Continuing to work together

Additionally, it’s possible for you and your ex to keep working together after the divorce. You don’t have to sell the business or change anything. Your relationship will be changing, making you business partners instead of romantic partners. This may mean that it’s a good time to set up a partnership agreement to define your ownership percentages, roles within the business, dispute resolution tactics and much more. But it is possible for divorced couples to keep working together professionally.

This shows you how complex divorce can be. Be sure you understand all of your legal options.