Getting Divorced as a Co-Owner of a Business

Getting Divorced as a Co-Owner of a Business

When a couple co-owns a business, it can certainly make the divorce proceedings more complicated. It can be challenging to figure out how things will play out after the divorce. Will there be a split of assets, products, and delivery of services? How will the company be operated after the divorce?

Whether or not the business started during the marriage, if the spouses worked together to build it over a period of years things can get complicated. Will it operate with both spouses after the divorce? Or will one spouse buy out the other?  There can be some difficult times getting through the details. The nuances of handling business assets and operations can require the need to hire the right family law attorney along with other professionals to figure it all out.

Keeping the Business Healthy

There are three major areas couples need to tackle to keep their business as functional and productive as possible while divorcing. And getting through these issues is not necessarily easy.

Many couples have difficulty getting through them.

  1. How will the business be managed and operated during the divorce? Who will control the business?
  2. How will the revenues be distributed?
  3. How will the business and its assets be divided after the divorce?

Spouses may have difficulty figuring out:

  1. The division of responsibilities.
  2. How the business will operate – who will be selling the services or products? Who will manage operations?
  3. Who is in control of employees and production or the delivery of services?

Keeping Your Interests Safe

Getting divorced when you co-own a business together can cause extreme disruption.  Will the spouses be able to work together? Will they be able to overcome the challenges and be able to thrive financially? When friction arises it may be time to contact a family law attorney who specializes in these issues and has significant business and trial experience with similar cases. This background can significantly help to reduce friction along with financial and management disputes.

When there is extreme business disruption because of the divorce proceedings, sometimes court intervention is required. In certain instances, the court may appoint a receiver who will collect and distribute funds accordingly.

Some divorces can work through the issues and the two spouses can continue to work together. Other times one spouse may buy out the other. And in some instances, the business will be sold and the proceeds will be divided. Divorce lawyers can negotiate the details and create a written agreement to move forward.

At The Buncher Law Corporation, our lead attorney Sven Buncher is a Certified Family Law Specialist with a background in business litigation. The team at Buncher is experienced with divorce that involves a family business. Contact us to learn more and set up a consultation to put a legal plan together.

Posted in High Asset Divorce Attorneys.