The divorce of ending a marriage is stressful enough, but when you have to think about dividing assets in the process – things can get really complicated from the very start.
Challenges in dividing all you and your partner have built in the past years will get pretty intense, and without an objective take on things, either one of you may end up shorthanded. This is particularly important when there’s a family business involved. – whether it be a partnership, proprietorship or a corporation.
Remember that – in a dissolution situation – before taking any concrete steps towards a division of capital, it is almost mandatory to have the business appraised. The positive aspect of this difficult situation is that owing to the professionals working with Oregon Divorce Online, these days – there are plenty of things you can do online starting with getting a dissolving, getting ordained, finding the best attorneys for your case, etc.
Best Ways to Divorce from your A Business
Anyhow, there are three directions to take when deciding how to divide the business –
either both spouses keep the business, one spouse keeps the business, or they sell the business outright.
Continue to own the business together
This solution is kind of tricky and does take a lot of guts and determination not to let personal problems get in the way of business ventures; not everybody has the strength to stay in the business with a spouse they can barely stand but if you decide that’s the best thing for the company and all the future profits, staying in business together even after the divorce may be the best option.
If you are firm on staying in the business together even after the split, just keep in mind working together with your ex-spouse would mean being in close contact with them all the time, and that you’ll have to base all of your decisions on professional grounds – without the “benefit” of actually talking about it further at home.
Still, staying in the business together has the benefit of not having to go for the valuation of the business, which, depending on the unique complexities of your business, can be an exceptionally expensive process.
Buy out your ex or be bought out by your ex
If you decide to split the business, after all – buying out your ex or agreeing to a particular sum and them buying you out is a totally okay option. From a financial and legal perspective, your business is just another asset owned by both of you, so the evaluation process will take time and money but in the end – you’ll end up having a legally approved and correct finances on your hands you’ll know how to deal with further on. Each of you will get to get your fair share.
A business appraiser is the first person to hire (after you’ve, obviously, consulted your lawyer); while this is pretty costly, you and your (ex) spouse can hire one appraiser and split the cost afterwards.
After the evaluation is done, you can both decide who wants to buy whom out. If, however, both of you want to stay in the business but separately, the situation can be a bit tricky – this would mean dividing the existing clients, coming up with new campaigns, logos, organizational process, hiring new staff, etc – virtually, starting a business from scratch.
The fair solution would be for the one who is more engaged in the business and cares more to buy the other one out.
Sell and split profits
This one is pretty much the easy and fair way out; while this option is pretty straightforward and probably the easiest option of all, you still need to hire an appraiser to perform a valuation of your business so you don’t end up selling your business for less of its original value.
Assuming that your business sells quickly, everything will be sorted out smoothly. Unfortunately, if your business is on the market longer than expected, you’ll have to be civil and work with one another until your offer is picked up on the stock market.
No matter what path you choose in dealing with this situation, it’s important you have just the right team working with you – lawyers who are trying to get you the best deals, honest appraisers, proper divorce attorneys, etc. Think twice before hiring people you are entrusting with your future.