Divorce is often a complex process, and for business owners the end of a marriage comes with additional challenges. When couples own a business, divorce involves significant changes, from changing ownership to seeking funds to buy out one of the spouses. In some cases, both parties are dedicated to building the business even after their personal relationship comes to an end. There are several options that people may pursue to protect their company when finalizing their divorce.
When one spouse wants to leave the business while the other wants to stay,this can be accomplished there are ways to address this situation through the equitable distribution process. The spouse leaving the business might be given a larger share of other marital property, such as real estate or retirement funds, in exchange for their share of the business.
The spouses may want to work out a distribution of the business as part of their divorce settlement, including establishing the percentage of the business that each spouse owns, especially if this is not specified elsewhere. They may want to create an option for one spouse to buy out the other in case of certain specified circumstances, called a buy-sell agreement.
At Graff & Associates we understand that business owners going through a divorce are likely to have quite a few questions about property division, and we do our best to make sure our clients are aware of all of their options. Call us at 215-572-6868 to schedule your FREE consultation!