The People’s Lawyer

If you get divorced, will you lose your family business?

On Behalf of | Dec 4, 2023 | Family Law

Your spouse files for divorce, and you’re worried about how much it’s going to change your life. Not only is this going to be the end of your marriage, but you and your spouse are joint business partners. Shortly after getting married, you started the business together, and you both still run it today.

Your concern, then, is that you’re going to lose the business and your source of income in the divorce. Will your ex get to keep the company? Will you have to sell the company to someone else and start over? It’s natural for a business owner to be worried about the outcome. 

You may be able to keep the business

If you’re concerned about this, there are a few different ways to keep the business even after a divorce. The first is simply to buy out your ex’s share in the company. Selling to a third party means that the two of you could divide your earnings. But you could also directly pay your ex for their half of the business, and then you could take over as the sole owner. You may also consider bringing on a different business partner to replace your ex, if that is what you wish to do.

Another thing to remember is that you and your ex could keep running the business together. If you both want to keep it, don’t assume you have to sell it just to divide your assets. You could create a partnership agreement and keep working together even after the divorce has been finalized. There is certainly no legal obligation for you to sell your business, as long as assets are divided properly.

Getting a divorce when you own a business together can certainly be complicated. Be sure you understand exactly what legal steps to take.