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Will divorce force you to sell your business?

On Behalf of | Jun 14, 2023 | Divorce, High Asset Divorce, Property Division

Building a business takes significant time and effort. If the courts view a business as marital property, however, this can leave business owners with questions about the fate of their business. Many worry that they will need to close their company. What does property division involve for business owners.

You may choose to sell your business.

If your business is marital property, the court will divide that business as part of your divorce. In some cases, this means that business owners and their spouses agree to sell the business and divide the proceeds. For some people, selling the company can be a straightforward way to handle a business and can provide both spouses with a stronger financial foundation after divorce.

Selling your business is only one option.

While some couples choose to sell their business, there are also other ways to approach property division. If you want to continue to operate your business, you may choose to buy out your spouse’s share of the company. This could involve buying that share outright with your savings, or you might choose to let your spouse keep other valuable assets like the family home in exchange for your ownership.

Finally, some spouses decide to continue operating their business together after divorce. This can be difficult and require careful planning, but it can also keep your business afloat even after your marriage ends. Outlining responsibilities and financial matters in a formal agreement can provide additional structure for your business as you enter this new chapter of your life.

While divorce can lead to the sale of your business, you can also explore other options that protect the future of the business you have built. The right legal strategy can help you prioritize your goals for the company and protect it from the impact of divorce.