Auto Accident Law 101

Auto Accident Law 101

Common Options For Settling Business Assets During Divorce

Everett Cook

Divorce for business owners presents a unique set of challenges. Not only do you have to sort out matters involving the relationship, but if you and your spouse are business owners, you might also have to sort out business matters. Every situation is different, but some common scenarios can be applied to this situation.

Operate as Co-Owners

The most straightforward, but sometimes most challenging, solution in this scenario is to continue to operate the business as usual. If the business is thriving and both parties contribute to its success, this route is often the best way. However, it can be challenging to work with an ex-spouse if you are not completely settled on the divorce or if the two of you no longer get along well. 

Yet, with this option, the couple could essentially exclude their jointly-owned business from the divorce settlement to leave it untouched. However, this option is only available if both parties agree with the plan. 

Perform a Buy-Out

Another option is to buy your partner out. Consider a scenario where one spouse was a physician, and the other worked as the office manager. If both parties agreed, the spouse that worked as an office manager could sell their interest in the business, and the physician could continue to operate the practice. 

In return for this buy-out, the party that sold their interest could be paid for their interest in the form of cash. Instead of money, both parties could also agree to provide the person who was bought out with comparable assets. Using the previous example, the spouse that worked as the office manager could receive an additional property as part of the settlement. 

Sell the Business

One of the more extreme measures is to sell the business. In many instances, this option is not the go-to scenario. This option is best reserved for when the business operation cannot move forward after the divorce. For example, suppose the divorce terms are especially excruciating, and the two parties would rather separate in every area of their lives. In that case, a sale might be the better solution. 

With this settlement option, the sale proceeds are split based on the couple's division of ownership. However, keep in mind that these proceeds do not absolve anyone from the responsibility of paying alimony or child support. 

Again, every person's needs are unique. You should sit down with an attorney to discuss your situation to determine how to move forward best. For more information, contact a company like Reisinger Booth & Associates.


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Auto Accident Law 101

After being involved in a serious auto accident with a drunk driver, I struggled heavily with getting the driver's insurance company to open a claim. When the insurance company started pushing back, I knew I needed to do something. I spent a lot of time digging through the laws surrounding auto accident claims so that I knew what my legal rights were. I even talked with an auto accident attorney. I created this site to teach others about what I learned, including my court experience. I hope it helps you to determine how you should proceed with your auto accident case.