Can you buy your spouse out of your business during divorce?

On Behalf of | Dec 17, 2020 | Divorce

You decided that you wanted to divorce your spouse because they weren’t helping make your marriage better. You often found that you disagreed, and you got tired of all the conflict.

Being in the position you are now, you’re concerned that your spouse will try to get half of your business during the divorce. This is a business you’ve run since before you even met your spouse, but you are worried that it will still be subject to division.

If your spouse doesn’t work with the business, sharing profits may be the only issue

If your spouse doesn’t work with you on the business, the truth is that the only share they may have in it is the profits earned during your marriage. If you don’t have a prenuptial or postnuptial agreement, then they may be entitled to some of those profits based on what’s fair.

If your spouse works with your business

If your spouse works with your business or is a partner, the situation becomes more complicated. You’ll have a few options, such as continuing to work together, selling your part of the business or attempting to buy them out of their half or portion of the business. In some cases, people choose to sell their businesses to an outside buyer and then split the profits.

What you do will depend on your situation and how much of your company is potentially at risk. Your attorney will speak with you about what to expect and if you should be worried about your business being split. If it is at risk, you may need to focus on how you can negotiate toward a solution you’re happy with.

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