Business owners have plenty on their plates. Throw a divorce into the mix and life can become even more overwhelming. While there are many different elements to navigate during divorce, as a business owner, you may be particularly concerned about what is going to happen to your business.
Divorce and business is a particularly complicated issue to navigate. You may have questions that you cannot find the answers to. Here are a few common issues people encounter during divorce.
How is my business valued?
There are a few different methods professionals use to value a business. You can approach it from an asset, market or income-based scope. These are three different methods that can predict your business’ value in order to correctly determine how much it is worth. This is a tool used in divorce to figure out what will happen.
Will I lose everything?
Every situation is different and depends on each person’s circumstances. While in some cases, people lose their businesses, this is not the norm. In order to figure out how much or what you will lose, you need to figure out if your business is considered separate or marital property. You may want to consult a professional in order to figure this out.
After you have an idea of what is up for grabs, you can move on to figuring out how to handle the business division.
What are my options?
Fortunately, you have a few options for dividing your business.
- Continue to co-own the business
- Sell the entire business and divide the profits
- Buy out your spouse
These are just a few common choices people make in regard to their business after divorce, should it come to this.
In order to best prepare for the process, you may want to consult with an attorney. An experienced attorney can walk you through the procedure and help you figure out your options.