The family business may be the most important asset you have when it comes to the property division phase of your divorce.
You and your spouse must decide what will happen to the company in which you have invested so much of yourselves. Here are three options to consider.
Sell the business outright
Assuming that neither you nor your soon-to-be-ex wish to continue with the family business, one option is to sell it outright. First, you will need to engage the services of an appraiser who can perform a valuation. Once you have a proper selling price, you can put the business on the market. Keep in mind that a sale may take time. This means that the two of you might have to work together longer than you anticipated.
Institute a buyout
Perhaps you are the more emotionally involved owner of the business. You can buy out your spouse and continue owning 100% of the company. Once again, you will need a valuation so as to determine the price. Often, the buyer transfers the lump sum owed to the seller in this situation. Alternately, you could offer your spouse an asset of similar value, such as the family home, or the two of you could agree on a buyout plan that takes place over time.
Continue as co-owners
The simplest option of the three may also be the most problematic. On the plus side, you would save the expense of a valuation and both of you would retain your individual interests in the company. However, not every couple faces a divorce so amicable that they can go on as co-owners of a family business. Still, if you feel you can work together following the divorce, continuing as co-owners might prove to be the best solution of all.