If you and your soon to be ex-spouse are running a business together, there are also implications for that business. You need to be knowledgeable about the options you have as business owners when you terminate a marriage.
What About Working in the Business Together?
It can be very difficult to separate emotional feelings during this time, and it could be difficult, if not impossible, to contemplate continuing to run the business as a couple if you will be ending your marriage. While this may work in rare situations, it could also complicate matters. In order to avoid financial jeopardy as a result of you and your former partner’s inability to get along or your difficulty separating your personal feelings about the divorce from your business relationship, you may be considering selling the business.
Selling the Business: When It Works
Selling the business to someone else and splitting the proceeds is one option for handling this. One spouse can also consider buying out the other spouse in order to retain full ownership between the two parties. It is never easy to arrive at decisions like this but consulting with an Arizona family lawyer can help you determine the various options you have with regard to a business.
If neither party can see themselves continuing to run the business, then it’s a good idea to consider the advantages of selling the company. It may end up benefiting both individuals by giving them a clean slate as well as funds from the sale of the company, but this decision should only be made after careful evaluation.
Why Valuation Matters
Both parties are likely interested in the valuation of that company and how it will influence division of property, if at all. With such complex issues on the table, you should definitely consult with an Arizona family lawyer as soon as you intend to file for divorce. Being prepared and having the right documentation as it relates to your business could prove crucial for heading into court. It is very likely that your Arizona family lawyer will suggest the retention of a business valuator who can provide an expert opinion on the business’ value. This valuation can be very persuasive in court.
It is never easy to determine what to do with the business when you are getting divorced, but selling the company and splitting the proceeds may give both parties the opportunity to move on without the struggles associated with having to work together as well. Before making this very significant decision, contact an Arizona family law attorney to go over your options.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Should We Sell the Business During A Divorce?, or other family law issues, please feel free to contact Lindsay A.M. Olivarez at 480.461.5300, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.