Though divorce has many implications, both emotional and practical, one of its key considerations is the equitable division of assets. Oftentimes, determining how to divide the family’s assets in a manner that satisfies both parties lengthens the divorce process, especially when one of the assets is a family-owned business.
Splitting the family business in a divorce can introduce a new set of challenges to an already complex process. Ultimately, each party must decide their intentions for their ongoing involvement in the business, as well as the best way to divide the business financially.
The first step is determining the business’s worth by getting a formal appraisal from an unbiased third party. Once a value has been established, couples who are in the divorce process typically have three options for dividing the business.
One Spouse Keeps the Business