What Can Happen to a Business When a Marriage Ends

When Tennessee couples get divorced, it could have an impact on their businesses. This can be true whether a married couple owned the company jointly or if one person owned it before or during the marriage. In some cases, it will be necessary to sell the business even if that is not what either party wants to happen. However, a divorced couple may choose to run the company together after it becomes official.

Alternatively, the company can be restructured so that each party has their own role within the organization that is independent from the other. By not having to interact with a former spouse, it may be easier to continue to run it even if the divorce wasn’t amicable. It is possible for one person to buy the other out. A buyout can happen with a lump sum payment or with payments being made over time.

Regardless of what happens to the business, it is important that the decision is made objectively and not out of spite. Each person should think about their desired outcome and what they would need if the business were to be sold or were to stay in operation. If the company is to be sold, it is critical to have a timeline for the sale in place as well as criteria for what type of offers would be acceptable.

In a divorce, any asset defined as marital property could be divided. This may include a business or any appreciation of the company’s value during the marriage itself. An attorney may be able to help a business owner negotiate a divorce settlement that is favorable to his or her interests.

Categories: 
Related Posts
  • Top 5 Mistakes to Avoid in a High-Asset Divorce Read More
  • Should I Keep My Marital Home after Divorce? Read More
  • Mediation Could Make Divorce a Less Stressful Experience Read More
/