As you and your spouse begin divorce proceedings, one of the things you have to determine is how you will divide your business.
There are a few different ways you and your spouse might handle your business. According to the American Bar Association, you may decide to sell your business during the divorce. In this situation, you might sell based on the current value of the business and divide the profits equally. As you consider this option, you also need to consider how long it may take to find a buyer. Selling a company can sometimes be a long process. Until the sale is official, you may need to have a strategy to continue running the company.
Consider a buy-out
Sometimes, the most feasible option may be for you to buy out your spouse. In this situation, you would pay your spouse for the other half of the business based on the company’s value. As you consider a buy-out, consider the assets you can access for the sale. In your situation, should you provide your spouse with a lump-sum payment or make payments over time? In some situations, you may choose to offer your spouse the amount he or she would have received if you had sold the business together.
Get a valuation
As you and your spouse consider your options, you should make sure you have a professional perform a valuation of your business. This ensures that both of you understand how much the business is worth, providing some concrete numbers to work with. You may each hire your own professional and compare the numbers or you can hire someone together.
