Working out a business plan during your divorce

Working out a business plan during your divorce

| Oct 7, 2020 | Uncategorized |

For couples who own a business together, having to determine what’s going to happen to that business if they divorce is likely something that they will find concerning. They know that the employees are counting on the company for income and the clients need the goods or services the business offers. 

When the spouses can work as a team to come to the terms of the divorce, there’s a good chance that they’ll be able to work together to decide what’s best for the business. There are several options to choose from. 

If they can get along, the exes might choose to continue running the business together. This means that they need to negotiate a plan for who will handle what duties for the company and how each party will be paid. The more detailed this agreement, the less of a chance there is for disagreements later. 

In some cases, selling the business will be the most viable option. This requires a valuation of the company so that a price can be determined. When this occurs, the proceeds from the sale need to be divided. Remember, you’ll have to only split the money that’s left after any liabilities for the company are settled. It might be possible for one ex to buy the other one out if they don’t want to sell the business to a third party.

Closing the business is another option, but one (or both) parties might not want to do this. Usually, businesses that are in financial trouble will face closure due to divorce between the owners. 

Determining what to do with the business is only one decision you’re going to make during your divorce mediation. Being willing to compromise in each session can help you to resolve the divorce matters as expeditiously as possible.