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Options for dealing with family business during divorce

The divorce process entails the split of virtually everything a couple had built together. While some assets or property may be easy to split as a divorce unfolds, other shared or marital property can be more difficult to divide. If a Missouri family's business is on the line, those involved in a divorce have a number of options for how that business will fare after the divorce.

One common option is to split the business just as other assets are split. One spouse can buy out the other's share just as what they might do with the house. This would require an appraiser to assign a current value to the business. Instead of putting down an exact dollar amount to buy out a share, an exchange of like-valued property can be a fair avenue to split the business.

Another common fate when business owners divorce is to sell the business. An appraiser will also need to be involved for this option. Selling the business and splitting the profits can be a straight-forward and equitable approach. A less popular option, but one that might work for some, is for both parties to continue to own the business together. 

The fate of a family business can be distressing when it comes to divorce because many businesses take years to build and may be worth a great deal financially. Missouri business owners in the midst of divorce may be unaware of all of the options and what option may be best for them. As with any division of property, a full and current evaluation of the worth and an understanding of how the fate of a business may impact future finances can help each party make a decision that is in his or her best interest.

Source: forbes.com, "How To Handle Divorce In A Family Business", Lora Murphy, March 7, 2016

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