Some business owners are married couples. For instance, maybe they both had other jobs when they got married, but they quickly realized that they wanted to spend more time together and have more financial freedom. So, shortly after that marriage, they launched a business together, which they have been running ever since.
But what happens if the marriage runs its course before the business does? Maybe the couple decides to get divorced. Does this mean that they both have to walk away from the company they started together?
Working as co-owners
Selling the company and walking away is definitely one option. People sometimes do this because it means they can split up the money that they earn during property division.
But it’s also possible for couples to keep working as co-owners. They may just have to redefine their relationship, perhaps by creating a partnership agreement. But if they had an amicable divorce, where they’re both on good terms and they just didn’t want to be married, they may be able to shift into more of a business relationship – where they are focused on cooperating for the sake of the company and their own income.
Additionally, there may be a scenario where one person wants to keep the business and the other does not. This is sometimes possible if they buy out their partner’s share. So, even if one person decides to walk away, that doesn’t mean that both people have to lose the company because of the divorce.
Divorce can be more complicated for business owners. It’s critical that they know exactly what legal steps to take.