For married partners who are also joint business owners, getting a divorce does sometimes mean selling the business.
The issue is that the business likely qualifies as a marital asset. Both partners own it, so they have to divide it along with their other assets during property division. One of the easiest ways to do this is simply to sell the business, pay off any outstanding debts and then split any remaining proceeds from the sale.
But for those who do not want to lose their business to a divorce, there are other options.
Buying out your partner’s ownership share
For instance, you may want to consider buying the ownership share that your partner holds, making you the sole business owner moving forward. You could do this by taking out business loans, depending on the value of the company.
But many people accomplish it by trading other marital assets. For instance, you may have a claim to a joint retirement account, but you agree to give that up if your spouse will give up their ownership claim to the other half of the business.
Continuing to work together
If you and your former spouse are still on good terms, there is also nothing preventing you from continuing to work together as business partners. You may need to take some legal steps, such as drafting a partnership agreement. This will not be right for everyone, and it depends on the level of conflict in the relationship, but it can work for some couples.
Exploring your options
Going through a divorce involving complex assets, such as a business, can certainly be complicated. When you find yourself in this position, be sure you know what legal options you have.