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Going through a divorce as a business owner

On Behalf of | Apr 2, 2019 | Divorce

For estranged Kentucky couples with a family business, the divorce process can include additional complications. It is often associated with legal, financial, and practical entanglements as well as the emotional concerns. However, for spouses that own a family business, especially one of significant value or major personal attachment, it can carry additional challenges. Dividing the family business can be particularly complex when it is the most valuable asset owned by the couple.

In order to commence negotiations on a business as part of a divorce, each spouse should consider how they want to deal with the company going forward. This can form a clear basis for negotiating the next steps to come. In some cases, one spouse will keep the business and buy out the other. This may be accomplished simply by giving up a greater share of other marital property like investment accounts, retirement funds, or the family home. When the value of the business far outstrips these other assets, however, the couple can conclude an agreement for gradual payments over time.

Some couples, especially those with an amicable relationship, may opt to remain together as business partners. When the business involves unique skills and knowledge associated with both parties, this can be a workable option during a friendly divorce. Others may choose to sell the business and divide the proceeds, although this option is less popular for many reasons, from attachment to the business to the length of time involved.

Business owners who decide to divorce may have many questions about their financial future. A family law attorney can often help a client reach a fair settlement on property division and other applicable issues.

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