The process of asset division is long, complex and often leaves both members of the couple stressed. This process becomes even rockier if the couple owns assets like a business.
In most cases, a couple can break down a business into its divisible parts and equitably divvy them up that way. However, selling the business entirely is also a possibility.
Things to consider as a sole owner
For a couple where one person owns the entire company and holds sole ownership, the decision is likely a little easier, because the owner with the rights has the liberty to sell their company whenever they so choose.
A business usually counts as marital property. As such, according to Connecticut law, it must undergo equitable marital property distribution. This means compensating a partner appropriately with the valuation of a sale.
Things to consider as a co-owner
Of course, selling a business is no simple task and it is not a decision that a couple should make lightly. Not only that, but different forms of ownership will result in different best outcomes for a couple.
In the event that both people own a share of the business, selling and dividing it will often be more complex. Other options are also available, like choosing to continue co-running or one spouse buying out the other’s share. By selling it and splitting the proceeds, a couple can avoid at least some of this headache.
Ultimately, it depends on an individual’s preference about how they want to split their business assets up. But selling and splitting the proceeds is often the least complex way to do it.