Going through a divorce can be a stressful and emotionally draining process. When a family business is involved, it becomes even more complicated. You will not only have to settle the division of personal property and assets and determine child custody if applicable, you also will have to decide how the division of the business is going to take place. For this reason, having an experienced family law attorney on your side to discuss your options can be vital towards reaching a fair settlement.
What are my options?
A family business is considered an asset in a divorce. Like all assets in a divorce, the decision as to how it will be divided is what you, your spouse, your respective attorneys and possibly a judge, will have to decide. Although there are a number of ways in which a family business can be divided, the three most common include:
- Selling the business to a third party. You and your spouse can decide to sell your business to an outside party and split the proceeds. This will require an appraiser to determine the value of your company. It also may take some time to sell, which means you will have to work with your spouse until the sale, or close the business temporarily.
- Continue working with your spouse. Depending on you and your spouse’s relationship, or the arrangement of the business, it’s sometimes possible for a divorced couple to continue working together. However, as you might expect, this is not common.
- Buy the business. If you want the business more than your spouse, you can buy the business after an appraiser is hired to value the company. If you don’t want the business, sell it to your spouse.
- Divide the business. In some cases, a business can be divided amongst the spouses. This is more often the case when a business has multiple locations and the spouses can work separately.
Contact a Knowledgeable Divorce Attorney in New Brunswick