When you get a divorce, you and your partner need to split up your assets. If the two of you are joint business owners, then the business that you own together may be one of the most expensive assets you possess. How this business gets divided is important.
Often, the easiest way to divide it is to sell the company. If you make money in that sale, then you and your ex can just split the earnings in half and the situation has been resolved. You can then use your earnings to start a new business, if you would like, that you own individually.
But you may want to keep your business, and you worry about losing it in the divorce. Do you have to sell?
2 other options
No, you do not have to sell, and you have two other basic options that you can use. The first is that you can buy out your partner’s share of the business. You could also consider bringing on a new business partner. Either way, your ex transfers their ownership share but you stay at the company and continue working as you have been.
Another option is that you and your ex can keep working together. You don’t have to sell the business or go your separate ways, at least from a professional perspective. If you do decide to continue being joint owners after your marriage ends, though, consider creating a business partnership agreement to address things like pay rates, ownership percentages and more.
Going through a divorce can get complex for business owners. It’s crucial to understand all of the necessary legal steps.