Your family business started with a little money and a dream. Now it’s worth millions, and it generates a very nice income for your family.
However, you and your spouse are equal co-owners, and you work together at the company. You’re thinking about getting a divorce. Does that mean you have to sell the company?
Selling is just one of three main options
Selling the company outright — having a valuation done and selling to a third party — is one option. In some ways, it’s the easiest. You and your ex can split the money after you sell. But it’s not the only option.
In some cases, couples decide to keep working together. There’s nothing in your business agreement saying that you can’t be business partners just because you got divorced. Whether or not this option sounds realistic to you likely just depends on the state of your personal relationship. If you’re still on fairly good terms and the two of you just decided not to stay married, it may work.
If you can’t work together, remember that you don’t necessarily have to sell entirely. You may be able to buy your ex’s shares from them and take over as the sole owner of the company. Then it’s just a matter of finding the capital required to make that happen.
Explore your options carefully
You have a lot on the line during your divorce, including your financial future. Make sure you carefully consider all of the options that you have at this time. You and your ex can find solutions that work for both of you, and an attorney can help you understand the pros and cons of your decisions.