We Split The House-How Do We Split The Business?
3 Strategies For Splitting The Family Business During A Divorce
When couples divorce, one of the biggest headaches is how to divide the assets. It can also be one of the most volatile issues in a divorce; right after custody and visitation. Once the house and the other assets are divided, there’s usually little left to fight about. That is, unless the couple owns a business together. Dividing a business between two people in the middle of a divorce can be particularly difficult. However, it can be done. Here are three options that couples have at their disposal when they’re trying to divide the family business. Before choosing an option for the division of a family business, it’s important to sit down with a Wisconsin business attorney.
If the divorcing couple is still on amicable terms, and can foresee themselves working well together for years to come, continuing co-ownership is a viable option. This option requires both parties to continue in much the same business relationship that they shared prior to the divorce. It’s important to note that this option shouldn’t be considered if the parties aren’t working well together at the time of the divorce. The attorneys at McLario Helm Bertling & Spiegel S.C. can help couples determine if this option will work for them.
Split Between Business and Other Assets
If one party wants the business, but the other party wants to walk away, splitting between business assets and other assets is a viable option. This option requires that one party keep the business by providing comparable valued assets to the other party. This can be in the form of a percentage ownership in the business, or in the form of a cash payoff. The cash can be obtained from a home equity loan, or a loan on a current retirement or investment account. For this option to work, both parties must receive comparable valued assets from the division.
Sell the Business Outright
If the couple can’t agree on the division of the business, and they’re not on amicable terms, it’s often best to sell the business outright, and divide the proceeds between the parties. This will ensure that the business is divided properly, and that both parties can walk away from the divorce with assets from the family business. A Wisconsin divorce attorney can help determine if this is the proper course of action for the divorcing couple.