The family business is likely something that you and your ex worked together to get started and grow. It may be a primary source of income and a source of pride, but it can become a source of contention if you go through a divorce.
Some people who are divorcing opt to sell or close the company. In other cases, one party may buy out the other party’s share. There’s another option—continuing to run the company together.
Running a business with your ex is only possible if you and your ex can get along with each other. This is often possible if you can keep a dividing line between what happened in the relationship and the matters related to the business.
Setting the terms for a business partnership
When you and your ex divorce and opt to continue running the business together, you’ll have to continue on as a partnership. This requires considerable thought because various terms must be included in a contract. These include:
- Responsibilities of each party
- Financial matters, including how expenses and profits will be handled
- Dispute resolution methods
It’s also a good idea to discuss how situations will be handled when there’s a crossover between work and home. For example, think about how you’ll handle the company Christmas party and set terms for that now.
The business is only one factor that you have to consider as part of the property division process. Making sure that you consider all assets and debts may help you to determine what’s in your best interest. Working with someone who can assist with every aspect of the property division, including everything related to the business, is beneficial.
