Essential Tips for Splitting Up a Business After Divorce
One thing that you should know is that the rate of divorce in the US is rated at 40-50%. One thing that you need to know is that when families divorce it is always challenging to share the family property. By the end of this topic, you will know how to split up the business after a divorce.
You should start by doing a business valuation. This will help you in determining the value under the scrutiny of which you should hire a neutral auditor. This way you will get the figures right and avoid more troubles. You should be aware that business valuation depends on property assets or stock, business earning in terms of profit and the type of business.
Besides, you should seek legal assistance. Where you will have to seek commercial or property attorney and present your figures and facts. Where the attorney will go through your details and come up with the right solution. In this case, the attorney will help you with issues of tax, ownership transfer, licenses, and permits. You find that this law firm can help with divorce cases to ensure a seamless process.
In addition, you should also decide whether to split or keep the business. Remember that you might be divorcing with your wife but not your business. One thing that you can do is for both of you to agree on what to do with the business which can backfire because you are still at loggerheads.
The other option is to sell the business to a third party. One of the best thing for divorcing families is to sell the business rather than splitting. Where you will have to share the proceeds according to the divorce provisions.
Apart from that, you should also buy out your partner. At some point it might not be an option to sell the business as a result of the complications with the divorce process. Here one partner probably the husband will buy wife’s stake and own 100% stake of the business.
You should also think of joint ownership. It is essential to note that it looks funny to have joint ownership after a divorce. One thing that I can tell you though is that when the divorce process was not messy and you still have a good relationship with your partner there is nothing that will prevent you from having joint ownership.
Last but not least, you should also place the business under the trust. Where the couple will formalize an agreement to run the business on their behalf. You should know that the asset protection trust will be able to control the business and remit benefits to the partners.