When you marry, you likely believe it will last forever. Because you honestly believed this, there’s a good chance you didn’t take steps to protect yourself or your business during your marriage.
While this may be disappointing, you still have options. Some of these are highlighted here.
Sell the business
While it may sound like a drastic step and a final option, selling the business is a viable solution. If your spouse has stock in your business, they are involved now, and the relationship is likely unbearable. At this point, bailing out may be your best option. The money you make from selling the business will be divided based on property division rules — and you can use your share to start anew.
Sacrifice other assets
You may be able to hold on to all your business if you let your ex-spouse have all or most of another asset. For example, they may want the family home, you may be able to leverage that to maintain ownership of your business.
Sell a stake in your business
To finalize your divorce settlement, you may need cash right away. Instead of selling the entire business, you can offer your employees or partners a portion of the stock. You may even be able to add a buy-back agreement to purchase the portion sold later.
You can make a settlement where you pay your ex over time. With this arrangement, you can satisfy the legal aspect of the divorce decree while protecting your business interest.
Filing for divorce can impact your life in almost every way. If you have a business and want to protect your ownership share, you must know your legal options. While some of the options above may not be ideal, they are what you must consider when ending your marriage.