Divorce can be a difficult and emotional process, especially when you share a small business with your spouse. The process of dividing assets and determining the future of the business can be complex and overwhelming. As a lawyer specializing in divorce cases, I have seen many couples struggle with this issue. In this article, I will provide some guidance on how to navigate a divorce when you share a small business.
The first step in navigating a divorce when you share a small business is to understand the legal implications. Depending on the state you live in, the laws regarding the division of assets in a divorce can vary. In general, there are two types of property: marital property and separate property. Marital property is any property acquired during the marriage, while separate property is any property acquired before the marriage or through inheritance or gift.
If the small business was started during the marriage, it is likely considered marital property. This means that both spouses have a legal right to a share of the business. However, if one spouse started the business before the marriage, it may be considered separate property. In this case, the spouse who started the business may be entitled to keep it.
Once you understand the legal implications, the next step is to determine the value of the business. This can be a complex process, especially if the business is not publicly traded. You may need to hire a professional appraiser to determine the value of the business.
It is important to note that the value of the business may not be the same as the value of the assets. The value of the business may include intangible assets such as goodwill, intellectual property, and customer relationships.
Once you have determined the value of the business, the next step is to decide what to do with it. There are several options:
Selling the business and dividing the proceeds may be the easiest option, but it may not be the most profitable. Buying out your spouse's share of the business may be a good option if you have the financial resources to do so. Continuing to run the business together may be the most challenging option, but it may also be the most profitable.
Once you have decided what to do with the business, the next step is to create a plan for the future of the business. This may include:
It is important to work with a lawyer and other professionals to create a plan that is legally sound and financially viable.
Navigating a divorce when you share a small business can be a complex and emotional process. It is important to understand the legal implications, determine the value of the business, decide what to do with the business, and create a plan for the future of the business. Working with a lawyer and other professionals can help ensure that the process is as smooth and successful as possible. Remember to take care of yourself during this difficult time and seek support from friends and family.