If you and your spouse are facing divorce, you may already be putting asset information together in anticipation of property division.
The family business may be the focal point in your divorce However, you may worry about the disposition of the family business. Here are three options to consider.
Sell the business outright
Perhaps the first option that comes to mind is to put the business on the market. First, you will need to engage a professional to place a value on the business so you can work out the appropriate asking price. Once sold, you and your spouse can split the profits and move on with your lives. Keep in mind that you may not find a buyer for a while, which means the two of you may have to work together longer than you anticipated.
Perform a buyout
You may wish to buy your spouse out so you can own 100% of the business. Once again, you will need a valuation to determine what the business is worth. If funds are not readily available for the purchase, you could consider giving your spouse assets equal to the value of the business. You might even be able to establish a payment plan.
Continue as co-owners
If yours is an amicable divorce, you and your spouse could think about continuing as co-owners. If the two of you have a financial and emotional attachment to the business, this might be the best option. You would not need to go to the expense of a valuation, and you would both keep your respective interest in the company. Your legal team can help you weigh the pros and cons of this and other options as you approach the property division phase of your divorce.