Can We Remain Co-Owners of Our Business if We Get Divorced? 

 Posted on April 07, 2023 in Divorce

For business owners, the last few years have been some of the most challenging they have ever faced. COVID-19 lockdowns, supply chain interruptions, record-high inflation, and worker shortages have all had a ripple effect on small businesses.

Divorce is not just hard on couples, but also on the business they own together. When two married business owners decide to get divorced, deciding what to do with the family business is often a top concern. Many divorcing spouses wonder whether they can continue to run the business together after their divorce.

Legal, Financial, and Emotional Implications of Co-Owning a Business with an Ex-Spouse

Business owners have the right to enter into a business partnership with anyone they choose. The question of whether ex-spouses can co-own a business is not the primary question in a situation like this. The main question is whether the spouses should co-run a business.

If you run a family business and are considering divorce, only you can know whether joint ownership with your spouse is a viable option. 

Consider the following questions:

• Do I trust my soon-to-be-ex-spouse?

• Can we handle operations together?

• Are we financially capable of running the business?

• Do I have the emotional capacity to work with my former spouse?

• How will we resolve conflicts about business matters?

• What boundaries will we set for business and personal matters?

• What are the legal implications of remaining co-owners?

• How will we modify our operating agreement to account for the new dynamic?

• What is the plan if joint ownership does not work out?

Answering these questions can help you assess if a joint venture is right for your situation. If not, other options, such as selling the business or having one partner buy out the other, may be more appropriate.

There are no laws preventing divorcing spouses from remaining business partners. However, it is important to understand the practical, financial, and legal implications of such an arrangement.

Contact our Wheaton Divorce Lawyers

Any divorce comes with intricacies and difficult questions. However, divorce involving business owners can be even more complex - especially if the spouses own a family business. 

At Goostree Law Group, our experienced DuPage County divorce lawyers help divorcing spouses resolve complex property division concerns, including concerns related to businesses and professional practices. We are dedicated to helping you reach a solution that works for both parties and protects your interests. Call us today at 630-364-4046 to set up a free initial consultation.

Source:

https://www.forbes.com/sites/catherineschnaubelt/2019/03/15/how-to-divide-the-family-business-in-a-divorce/