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What happens to your business during a divorce?

On Behalf of | Dec 4, 2020 | Blog, Divorce |

When you file for divorce in Texas, the divorce proceedings might threaten to tear your business apart. If you and your former spouse both have a stake in the business, the issue becomes even more challenging. Should you sell your shares and cut your losses, or is it possible to maintain some control over your business? Here are a few options for business owners who are seeking divorce.

What can business owners do when they’re seeking divorce?

For some business owners, selling the business might be the best option. They can sell off the business, divide up the income and move on with their lives after the divorce. However, the situation gets complicated if one party wants to sell and the other wants to keep running the business. When this happens, you might need a court order before you’re allowed to sell the business.

If you want to maintain control over the business, you must buy your spouse out of the company. You’ll purchase their business assets, which allows you to keep the business and your former spouse to walk away with the proceeds. This can be a mutually beneficial agreement if only one spouse wants to keep the business. If you’re the one who wants to leave, you can negotiate for your former spouse to buy your business interests at a particular price.

You could also both remain in the business as co-owners. Most divorced couples don’t like the idea of continuing to work together, but if your divorce was amicable, you might be able to work together and keep your business intact. You could also divide up your responsibilities to keep your jobs separate and your interactions to a minimum.

How might an attorney help you divide up your business?

An attorney might make it easier to divide up your assets during your divorce. Your attorney may help you weigh the options and decide on the best possible course of action for your business. They may also help you negotiate with your spouse to buy out their shares or sell your business interests to them.