If you and your spouse own a business and have decided to divorce, our divorce attorneys can successfully help you through divorce agreement negotiations.
Divorce is a complicated process regardless of your circumstances. But what if you and your spouse own a business together? This can seriously complicate things.
What are Your Options?
It’s not uncommon for a couple to own a business together. But if you co-own a family business and have decided to divorce, you are likely wondering what your options are. Adding a business into divorce agreement negotiations can make the proceeding even more challenging.
As with any aspect concerning marriage, some specifics will need to be handled when determining how you want to handle a business you and your spouse co-own. Here are some things to consider and your options:
- One spouse buys out the other half of the business – As far as the court is concerned, owning a business is an asset both spouses own. Therefore, it will be treated similarly from a legal and financial perspective. If you and your ex cannot continue working together, the business will need to be divided for both spouses to get their equal share. This starts with hiring a business appraiser to evaluate your business. Once the value is determined, one spouse can purchase the other’s half of the company.
- Continue co-owning the company – This is not the right choice for some people, but for others, they can continue to run the business together. If you and your ex can continue a professional relationship, you can keep your interests in the business.
- Sell the business – This option is generally the easiest for both parties. The business gets sold, and the profits are split equally between spouses. While sometimes it’s the easiest option to avoid potential issues, it might not be the best option for a successful business that will continue to yield profit.
Mediation is one of the best ways to settle issues regardless of which option is suitable for your situation.
Benefits of Choosing Mediation
When mediation is suitable for your situation, there are many benefits to choosing this forum. Settling business matters through mediation saves money and time and generally leaves the parties in a better state of mind. Mediation allows the parties involved to focus on the underlying circumstances rather than narrow legal issues.
For mediation to work, you and your spouse need to get on the same page about the terms of your divorce and your business. You’ll need to agree on most things and not become seriously argumentative about things you don’t see eye-to-eye. You must both be willing to compromise.
St. Louis Mediation
At The Betz Law Firm, we are experienced divorce and family law attorneys. However, our principal partner, David Betz, is also experienced in resolving cases through mediation. As a firm, we are committed to guiding our clients through the divorce process with the same level of professionalism that we would wish for our family members.
Speak With an Experienced Attorney
Our firm uses experience, good communication, and availability to help families get through life changing events.