Researchers estimate that among the 22 million small businesses in Texas and across the United States, about 3 million of them are owned by married couples. Jointly owning a small business can definitely add a new wrinkle to a couple’s plan to divorce. A couple has several choices for handling the business as an asset, and most of those options require a business valuation to ensure a fair division of property.
Rather than dissolving the business, some couples may choose the difficult option of continuing the business partnership despite the divorce. This plan usually includes clearly defined goals and parameters for the couples and their roles in the business. Because this option is usually stressful for the couple, it seldom lasts very long, so it may simply be postponing more difficult choices.
Among those choices is one spouse buying out the interests of the other. Obtaining a business valuation will help the spouses determine the best course of action for fairly purchasing the other half of the business, since the selling spouse may be relinquishing important income. If neither spouse wishes to continue the business, they may simply sell the company and make a fresh start.
A fair and complete business valuation may mean the difference between a spouse’s years of struggle or moving forward with confidence after a divorce. Seeking guidance and assistance may prevent one from making hasty decisions or accepting a settlement that is well below the true worth of the business. A Texas attorney with years of experience helping business-owning couples through divorce will have the skills to advocate for a fair settlement.
Source: smallbiztrends.com, “Apply These 3 Strategies When Dealing with the Ex in Business“, Accessed on July 22, 2017