Do you know how to handle a co-owned business in divorce?
For the most part, you and your current spouse have a standard divorce. One unique aspect of the split may be the existence of a shared business in Texas. How do the two of you split a company?
To help eliminate confusion and handle things both legally and fairly, the American Bar Association offers three options for your situation. Work with a legal professional and your current spouse to reach a fair decision.
Sell the business
You and your soon-to-be-ex may have no problem outright selling the business and splitting the profits, which can provide some financial peace of mind for the next chapter of your separate lives. With this option, it is best to have the business valued by a professional, to sell it for the best price. Know that it may take longer than you like to successfully sell the business.
One spouse buys out the other
If either you or your current spouse no longer has a desire to continue operating the business, one of you may want to buy the other out and become the sole owner. Of course, going this route requires that you have the funds necessary to buy out your business partner, which may necessitate you taking out a loan.
Perhaps you and your current spouse make better business partners than you do marital partners. You may not mind remaining as co-owners of the operation. To make this easier, you can schedule operations so that you two are never present at the business simultaneously, or that you designate business decisions to a trusted employee or manager.
This information is only intended to educate and should not be interpreted as legal advice.