dupage county divorce lawyer The equitable division of marital property during the divorce process is a frequent source of conflict. Virtually all married couples own some joint property. Even those who have largely kept their finances separate are likely to jointly own home furnishings, vehicles, or funds contained in a retirement account. When your spouse’s financial interests and your own are inextricably intertwined due to the addition of a shared business venture as part of your marital estate, it is critical that the business be divided in a manner that is equitable to both parties. Such a division can be difficult to accomplish without causing significant harm to the business itself. If your goal is to keep the company open, you will need to work with your attorneys to devise a strategy. You may have multiple options in this regard. An attorney can help you review your potential options.

Ways to Divide a Shared Business in Divorce

There are numerous strategies for ending a marriage without sabotaging a joint business venture. Even if you and your spouse have decided not to prioritize the continued operation of the business, you still must divide the value of the company in an equitable fashion. Potential strategies may include:

  • Continue joint ownership – When spouses are engaged in the joint operation of a business, their roles may not be well-defined. If you and your spouse are able to remain amicable enough to interact with each other in a professional context, it may be possible to keep operating the business together, but with better-defined roles and divided ownership interests. It may also be prudent to plan in such a way as to limit your direct interaction.

  • Buy-out – A second option is to allow one spouse to “buy out” the other’s shares so that the business can remain in continuous operation with a single leader. This is often a strong option when one spouse is instrumental to the business and does a more significant percentage of the work in its day-to-day operation. The spouse selling ownership interest may instead keep other marital property of a different nature but similar financial value.

  • Sell the company – In some cases, operating a business together can inflict such stress on a marriage as to become a major factor in their reasons for electing to divorce. In these cases, there is rarely intense sentimental value associated with keeping the business going, and it may be best to simply sell the business and share the profits.

There are many other options for equitably dividing a business incident to divorce. An attorney can assist you in choosing a beneficial strategy.

Contact a DuPage County Divorce Attorney

The Davi Law Group is experienced in assisting spouses who share a business through divorce proceedings. Our skilled Wheaton divorce attorneys may be able to help you and your spouse decide on a method for dividing the business that is mutually satisfactory. Call 630-657-5052 to receive a free consultation.

 

Source:

https://www.forbes.com/sites/catherineschnaubelt/2019/03/15/how-to-divide-the-family-business-in-a-divorce/

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