How to Split Up a Business After Divorce
You find that the rate of divorce in the US is being put at 40-50%. One thing that you need to know is that when families divorce it is always challenging to share the family property. Discussed herein are some of the tips for splitting up a business after a divorce.
You should start by doing a business valuation. This will help you in determining the value under the scrutiny of which you should hire a neutral auditor. One good thing with this is that you will get the figures right and avoid more trouble. You should be aware that business valuation depends on property assets or stock, business earning in terms of profit and the type of business.
Besides, you should seek legal assistance. Here you will have to seek commercial or property attorney and present your facts and figures. Of which the attorney will go through your details and come up with the appropriate solutions. In this case, the attorney will help you with issues of tax, ownership transfer, licenses, and permits. You find that this law firm can help with divorce cases to ensure a seamless process.
Apart from that, you should also decide whether to spit or keep the business. You find that you might be divorcing your business and not your wife. At some point both of you can reach at a consensus on what action to take on the business though it might be tricky when you are still at loggerheads.
Not only that but you should also sell the business to a third party. One common thing with most separating families do is to sell the business rather than splitting it. After which you will have to share the proceeds according to tom divorce provisions.
Besides, you should also buy out your partner. Sometimes issues are too complicated that selling the business after divorce might not be an option. Here one partner probably the husband will buy wife’s stake and own 100% stake of the business.
Besides, you should also consider joint ownership. You find that it is funny to have joint ownership after you have separated. One thing that I can tell you though is that when the divorce process was not messy and you still have a good relationship with your partner there is nothing that will prevent you from having joint ownership.
Last but not least, you should also place the business under the trust. Where the couple will formalize an agreement to run the business on their behalf. In this case, the asset protection trust will be able to control the business and remit benefits to the partners.