Guest post written by Brett Trembly, the founding partner of Trembly Law Firm which specializes in business and franchise law. Brett is dedicated to helping innovators and job creators protect their life’s work. Because when business thrives, our economy thrives.
Owning a business with your life partner can be great … until it isn’t. No one likes to think about getting a divorce, but the reality is that divorces happen. According to the CDC, the divorce rate in the United States is 3.2 per 1,000 people. When you and your partner get divorced, it is important to know how to divide up assets. BUT When you and your ex life partner get divorced AND you own a business together, it gets tricky.
The Forbes article titled, “How To handle Divorce In A Family Business,” discusses three very different ways to figure out this dreaded question you might be asking yourself, what now?
If you want to treat your business just like another asset owned by both you and your ex life partner, divide the business so that each of you get your fair share. This way, you are treating your business the same way you would a different asset from a financial and legal perspective.
If you and your ex partner are still on good terms, and you think that you could work together and continue to run the business, do just that – continue to run the business.
Lastly, if you do not want to divide the business or continue working with your ex life partner, sell the business and split the profits with your ex-spouse. If you decide on this plan, you should hire an appraiser to perform a valuation of your business so that you can determine an appropriate selling price.
Regardless of which plan works best for you and your ex-spouse, make sure to hire a team of professionals that can help facilitate the process and make it more simple. In the Forbes article, the author explains that by having a trusted team that’s working in your best interest, you can move forward with your life and take on your next venture with confidence. Good luck and just know that by following one of these plans, you are taking a step in the right direction!