Property division and debt distribution represent among the most contentious aspects of a Maryland divorce. Property division issues potentially become even more acrimonious when a divorcing couple jointly owns a business. If you co-own a business with your spouse and find yourself in or heading toward a divorce, you understandably may wonder what your options are in regard to dealing with your venture after your marriage dissolution case.
There is a trio of primary options available to you when it comes to divorce and the business you jointly own with your spouse:
- Sell the business
- One spouse buys out the other
- Continue to run the business together
Sell the business
One of the primary ways that you can resolve the matter of a jointly owned business when it comes to property division in a divorce is to sell the enterprise. Through a sale, you and your spouse split the proceeds and can then utilize the funds in whatever manner each of you deems appropriate.
Another method of addressing a jointly owned business when dividing property during the divorce process is a spousal buyout. Through a spousal buyout, either you or your spouse purchase the other’s interest in a co-owned enterprise.
Continue to operate the business jointly
Finally, you and your spouse have the option of continuing to own and run a business together. This type of arrangement presupposes that you and your spouse have the capacity to communicate honestly and civilly despite your marriage coming to an end.
No matter which of these three pathways you select, an agreement between you and your spouse will need to be in writing. Retaining an experienced divorce lawyer is a wise option when involved in a divorce that requires a more complicated property division.