How might you split up your family business during a divorce?

On Behalf of | Feb 21, 2020 | Family Law

One of the more difficult parts of a divorce is when you and your spouse have to agree on how to split up your property. One of those possessions that you may have to reach an agreement about if your family business. There are many different ways that you may consider splitting it up.

If you and your spouse have a difficult time seeing eye-to-eye in your marriage, then you may find the prospect of continuing to work together completely unthinkable. If this describes you and your spouse’s situation, then one of you may want to turn your equity in the business over to the other.

Doing this sounds a lot easier than it is. You’ll need to have someone come in and appraise your business first to see what its value is. You’ll then want to sit down with your attorney to learn what the tax implications are associated with making certain choices. You’ll then have to narrow in on what type of assets you want to request in exchange for you relinquishing your rights to the business.

Another option that you may want to consider is continuing to run your business together. You may be able to do this if you still have some ability to communicate well with one another. You may want to break it to your employees that while you’ve split up, you are committed to leading your company as a collective force. You two may want to revisit your roles and responsibilities and expectations during divorce talks just to make sure that you’re for sure on the same page with one another.

A final option that you may want to consider is for both of you to sell off your company altogether. This may be the most ideal option if you have a company that hard to assign a valuation to, when you are having difficulty deciding who will run the business or when you’re both just simply looking to make a fresh start.

Deciding the future of your business isn’t easy. This is especially the case if you’ve invested a significant amount of time in growing your client base or it’s the only job that you’ve had for some time. A family law attorney can help you negotiate a deal with your ex whereby you may be able to keep your Salem business for you if that’s what you want.