For many couples, the most frustrating aspect of a divorce is the process of dividing up assets. Business owners have the particularly puzzling task of breaking down the company into divisible parts between both individuals in the marriage.
A simpler solution may be to simply sell the business before the finalization of the divorce, but that is not a decision to make lightly.
If you solely own the business
If you are the sole owner of your business and your spouse has no such ownership rights, you are at liberty to sell the company. You might choose to do this because your business is likely considered marital property, even if your spouse is not an owner. This means that the company is subject to Equitable Distribution of Marital Property in Connecticut. There is still the requirement to compensate your spouse according to the valuation of the sale, but you may find this preferable to splitting the physical assets of a company.
If you co-own the business
Dividing a business during divorce is a more complicated affair when both spouses possess ownership rights. You do have a few options regarding the family business, but the decision will have to be mutual if you do not want the court to intervene. You might choose to continue amicably co-running the business, or one spouse can buy out the other’s share. However, this could be another situation where putting the company on the market and splitting the proceeds is the simplest and best solution.
Making a serious decision regarding the business as a marital property requires communication in order to avoid conflict. A neutral divorce lawyer can serve as an impartial mediator to help facilitate such sensitive discussions.
