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Options to consider when family business owners divorce

On Behalf of | Jan 5, 2023 | Divorce |

You and your spouse devoted years to building your family business All those hours of planning and working along with securing investors and catering to a wide swath of customers have paid off.

But what you did not do was pay closer attention to your marriage. It is crumbling. And while you are partners in marriage, you also are partners in business. What will happen to your family business as you take the steps toward divorce?

A sale, a business buyout or continuing to operate

You have a trio of realistic options. They include:

  • Selling the business: This may represent the most sensible choice. In choosing this path, it is important to gain an accurate value of your company. That is why you need to get the business professionally valued. You understand that you may have difficulty letting go of the company you founded. But some have often said, “You start a business to sell a business.” With that in mind, you can take your share of the sale proceeds and begin a new company. That is what entrepreneurs do.
  • Purchase your former spouse’s share: A business buyout is possible but understand that your spouse may drive a hard bargain so negotiations may be tense. Your devotion to the company keeps you going, and you are determined to keep it running. You may have to do so with the support of small business loans, investors and even a new business partner.
  • Continue to operate the business with your former spouse: While your marriage no longer worked, you understand that your business partnership has almost always been a great one. You and your spouse have a solid working relationship that could continue but be prepared for some uncomfortable moments. It is a good idea to “compartmentalize” certain aspects of your life to make this scenario a workable one.

Your business has meant a great deal to you. An attorney’s insight may help you in making a decision.

Gaining new perspectives

Whether deep thought is necessary, or you know what action to immediately take, you must decide. Carefully weigh each option. Along the way, you may gain new perspectives on personal and business relationships.