A business typically provides income for the family and is also considered property, which may be divided between spouses in a divorce. Divorcing spouses will either continue ownership of a business together, sell the business and split the profits, or buy out the other spouse’s interest.
All too frequently, the tensions inherent in working together are what caused the marriage to collapse in the first place, but some couples remain interested in continuing a business relationship after a divorce.
If you are considering co-ownership, those familiar with the territory recommend that you start the business relationship like you are starting business with a stranger.
This means defining every aspect of the business beforehand from who does what jobs to what happens in a split – much like you would do in a formal negotiation with a ‘non-relative’ business partner.
If you are considering divorce and have questions regarding property division with regard to a small business, child custody (now referred to as parenting time under the new law), child support or any other family law concerns, contact the Law Offices of Ronald L Bell for help.
Source: Wall Street Journal, “How to Keep a Business Alive After a Divorce”, by Andrew Blackman, January 24, 2016.