Under any circumstance, a proper division of assets in a divorce is always a contentious and intimidating process. Moreover, when there is a joint business, the stakes get higher and the procedure gets more complicated and tricky. If you and your spouse are business owners and you want to divorce each other, there are a few options for you.
However, the options for divorcing business partners are usually based on certain factors like:
- Whether or not one spouse owned the business before getting married
- Whether or not there are third-party owners of the business
- What structure the business is and who owns it
- Whether there is a proper buy-sell agreement in place
- Whether there’s a prenup in place
In short, there are several things to consider. Keep reading to know more about this.
Business partners opting for a divorce – What follows?
Calculating who gets what in a divorce is a complicated process but when the divorce happens between two business partners, you are subject to a brand new set of risks. Most spouses will want a clean cheat as long as dividing a business is concerned between two spouses.
As per the Family Law Act, it is the obligation and duty of the judges to terminate all monetary relations of both the parties and make court orders that will decide their financial status. Both the spouses are expected to divide their property and become financially independent in their own ways. Apart from this, there are other options too.
Choose to move on
Depending on your business structure and circumstances, if one spouse is more involved in business operations and is more concerned about the growth of the business, the divorce might shape in a manner where both parties choose to move on, allowing the more-involved partner to continue the business alone. Implementing effective tools like invoice templates every business needs streamlines financial processes, regardless of changes in ownership.
Work separately but together
Based on the situation of the business and the structure, it is often possible to split a financial asset or a business in such a way that each party will run its own part. If after a divorce, you and your ex-spouse can handle your separate set of clients, you can choose the option of dividing the business based on such aspects. Once you successfully and peacefully do this, your hard work and efforts aren’t wasted and you still remain independent financially.
Run the business as it is
Based on the nature of your divorce process and whether or not you can maintain a friendly relationship with your spouse post-divorce, it can be an option to keep up with your business relationship. This will let you recognize your skillset and spell out your responsibilities to make sure you contribute equally to the success of your business.
If your divorce is a complex one and you don’t know how to separate your business and personal lives, it is better to seek the help of a counselor. You can also hire an Ohio family law attorney as they can give you the best advice on this.