Essential Tips for Splitting Up a Business After Divorce
It is essential to note that about 40-50% of the couples get divorced. But when people separate sharing family property is always challenging. Here are some of the amicable scenarios to split up the business after a divorce.
One of the things that you should start with is business valuation. One good thing with this is that it will help you in knowing the value under scrutiny and you should settle for a neutral auditor. One good thing with this is that you will get the figures right and avoid more trouble. It is essential to note that business valuation depends on property assets or stock, business earnings in terms of profit, the type of business.
Besides, you should seek legal assistance. In this case, you will have to engage a commercial or property attorney and present your figures and facts. Of which the attorney will go through your details and come up with the appropriate solutions. In this case, the attorney will help you with issues of tax, ownership transfer, licenses, and permits. You find that this law firm can help with divorce cases to ensure a seamless process.
The next thing is to decide whether to keep or split the business. You find that you might be divorcing your business and not your wife. One thing that you can do is for both of you to agree on what to do with the business which can backfire because you are still at loggerheads.
Apart from that, you can also sell the business to a third party. You find that most of the divorcing families always prefer selling the business than splitting it. Where you will have to share the proceeds according to the divorce provisions.
Besides, you should also buy out your partner. At some point it might not be an option to sell the business as a result of the complications with the divorce process. What happens is that one partner where in most cases is the husband will but the wife’s stake so that can own 100% stake of the business.
Apart from that, we have joint ownership. It seems ridiculous to have joint ownership after a divorce. One thing that I can tell you though is that when the divorce process was not messy and you still have a good relationship with your partner there is nothing that will prevent you from having joint ownership.
Apart from that, you should put the business under the trust. Here the couple will have to formalize an agreement to run the business on their behalf after the divorce. You should know that the asset protection trust will be able to control the business and remit benefits to the partners.