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How can I split a business during a divorce?

| Feb 27, 2017 | High-Asset Divorce |

Divorce proceedings can be a complicated ordeal for any couple. But for couples that have built a business together, financial negotiations are especially daunting. There are so many factors to consider when trying to find an amicable way to divide a business or its assets. These factors can include the value of the business, your desire for continued involvement in the business and your ability to work and get along with your ex.

So, what choices do you have? Well, perhaps the simplest is to maintain the status-quo. If you and your ex are still able to work together, you can remain business partners even after the divorce is finalized. Staying business partners allows you to avoid other more complicated and potentially expensive options.

But often when couples divorce, they no longer want to work together. If such is your case, one of you may be able to buy the other out. To do this, the purchasing partner may want to take out a loan from a bank. Or, you could set up a property settlement note which would allow the spouse who is keeping the business to pay a long-term loan with interest to the selling spouse.

You could also try to sell the business outright, which would allow you and your spouse to split the profits. But be forewarned that it can sometimes take a long time to find a buyer for a business, meaning you and your ex could be financially connected for quite a while.

Before you make any final decisions regarding the fate of your business, you may want to discuss the matter with an experienced high-asset divorce attorney. The attorney can help you with such details as having your business valuated and working out a settlement plan that best suits your needs.