You and your spouse run a successful business in Pleasanton. Business has always been good, but recently, it’s been better than ever. That’s why you were in such shock when your spouse decided to file for divorce. You thought everything was going well, but it turned out that they were not happy, regardless of the business’s success.
Now, you have a serious concern: What will happen to your business? The good news is that there are a few ways to handle your business during divorce. Your attorney can give you more information about the following possibilities.
1. Continue running the business together
One thing you can try to do, particularly in cases where you and your spouse still get along, is to continue running the business together. Running your business together might be beneficial if you both play a vital role in the business’s services.
2. Sell the business and share profits
If you have the kind of business that can be sold, you may wish to do so and share the profits. For instance, your business may be valued at $100,000, so if you sell, you could share a fair value based on what you receive. Remember that California does have a 50-50 property division law, but you and your spouse can decide if splitting any profits in half is fair or if you would be happy to agree to another arrangement.
3. Buy out your spouse’s share
Finally, there is the option to buy out your spouse’s share in the business. For instance, your spouse may have a 50% share in the business, so if your business is worth $100,000, giving them $50,000 in other assets could help you keep your business without needing to have their input in the future.
Your spouse could also choose to try to buy out your share. Remember, it’s up to you to decide if you want to sell your share, and it does give you some negotiation power if you would like to sell. You could decide you want, for example, $70,000 instead of $50,000, because you’d be happy to remain part of the business if your spouse can’t buy you out for what you want.
Overall, there are many ways to handle business during a divorce. You and your spouse can sit down and talk through what you’d like to do with the business. If you want to keep it open, the choices you make will be different than if you plan to close, so consider all possibilities carefully.