3 options to consider when married business partners divorce

Partners in life sometimes become partners in business. But, sometimes, diverging paths in one or both of these areas may lead to spouses to permanently part ways.

However, the successful business that the two of you created only brings further complications to the divorce. What will you do with your company? What is the most realistic solution when splitting couples consider splitting the business? Or do you even split the business?

Sell the company? Buy out your former spouse?

When business owners who also are married decide to divorce, these three options are often the most realistic to take when deciding what happens to the company:

• Sell the business: This may be the most practical solution. The valuation of the company is crucial. Get the business appraised and address issues such as shareholder loans. Granted, you may have mixed feelings about leaving the company you nurtured into a success, but you have to look ahead. You may retire or take the proceeds from the business sale to start your next business venture.
• Buy out your spouse: If the company means that much to you, this is an option to consider. However, it will not be easy. Negotiations to acquire the company may be filled with stress due to the nature of your disintegrating relationship with your spouse. Consider the expense related to the acquisition, and, in doing so, you have to bring aboard additional investors and even new business partners. Business loans also may pile up. If this does not work, you may have to simply agree to sell.
• Remain business partners with your former spouse: This is possible, but only in certain scenarios. If the two of you bring different strengths to the business partnership and this helped create a winning formula, then you may want to consider this route. But you must ask yourself whether it is realistic to work with your former spouse. You also must be able to separate your personal life from your professional life for this to succeed.

According to the Exit Planning Institute, half of all U.S. business exits are involuntary and attributed to issues such as divorce, disability, death and disagreement. With your pending divorce, you must decide whether to leave the company you started.

Insight from a seasoned attorney

Often when difficult situations surface, difficult decisions accompany them. This may hold true when married couples who own a business decide to divorce. The decision is yours. However, before making that decision, it may be a good idea to gain insight from a seasoned family law attorney.