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Do you have to sell your business when you divorce?

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Do you have to sell your business when you divorce?

| Sep 14, 2020 | family law |

As someone who works in the oil and gas industry, knowing that you’re going to be divorcing your spouse is a little nerve-wracking. You have your own business and you are worried that your spouse is going to want to keep as much of it as they can for themselves. You’ve worked hard to get where you are, so the last thing you want is for your business to be affected by your divorce.

The good news is that there are solutions for couples who divorce while owning a business. Depending on when you started the business and how much your spouse contributed, you may be able to protect your business and its assets from division during your divorce.

What are some alternatives to selling the company?

Some people decide to sell it outright to make it easier to divide the profits. If you and your spouse want to sell your business, this could be a good way for you to both get what you want and to walk away with cash. However, if you don’t want to sell, then it’s important to have the business accurately valuated to learn its true and current value. Once you know the value of your business, you can negotiate using other assets to offer your spouse a fair deal.

Keep in mind that the date your business was established matters a great deal. If you came into your marriage already owning your business, it may be considered as separate property. Any assets obtained during marriage or profits earned might be divisible, but that’s something to discuss with your family law attorney as you move forward with your divorce.