Many business partners are also married couples. They may both have had other jobs when they got married, but then they decided to open their own business together. Eventually, that business grew to the point that it was the only employment they needed, and they became business partners as well as marital partners.
But what happens if this couple decides to end their marriage and get a divorce? They may no longer feel romantically connected, or they may just feel that they’ve drifted apart. There are plenty of different reasons for divorce, and no-fault divorce often means that couples can just cite irreconcilable differences. But what happens to their business when they end their marriage?
3 traditional options
Every situation is unique, so some business owners may have options that they choose to exercise beyond the three that are listed below. But these are the main ones that people use when getting divorced:
- One person stays at the business. They do this by buying out their partner’s share and taking over as the sole owner.
- Both partners leave the business. They sell the company to a third party and split up the money that they earn during the divorce.
- Both partners stay at the business. They set up a partnership agreement and continue working together, dividing their other assets as they get divorced.
Which option is best is going to depend on the specific details of each marriage. Some couples can work together after divorce, for instance, and others can’t. But it’s important for all who are going through this process to understand the legal options they have.