Do you have to sell your family business in divorce?

On Behalf of | Jan 12, 2024 | Division Of Property

Married business owners often find the arrangement very convenient when the marriage is going well. In fact, many couples specifically start businesses together because it seems like an ideal partnership. And that business can flourish over the years.

But what happens if the couple gets divorced? Say that you and your partner started a business but now your spouse has said they would like to end the marriage. Does this mean you’re also going to have to sell the family business? If so, the divorce could change much more than just your personal life.

You can keep working together

While selling your business is certainly one option to consider, as it would allow you and your spouse to split up the money that you earned, it’s not the only option you have. You could simply keep working together after the divorce. This may work if your relationship is amicable, and it’s wise to draft a partnership agreement to define that relationship after the marriage has ended.

You could buy your ex’s share

If working together isn’t possible, you may be able to buy your ex’s share of the business. You could take out a business loan and purchase it from them, making you the sole owner. You may also want to consider giving them other assets that you would otherwise have a right to. For instance, if the two of you have a family home with roughly the same value, one of you could take the home and the other could take the business. 

It all depends on the specifics of your situation. But rest assured that there are legal options at this time so that you can seek an appropriate solution.