When a couple decides to end their marriage, numerous aspects of their lives are necessarily affected by their split. Finances, relationships with loved ones and living space are almost universally affected whenever couples choose to divorce. However, for some not even work provides a haven from the effects of divorce.
When a couple runs a business together, the business itself and each spouse’s position within the business are at least somewhat affected by the couple’s divorce. In some cases, the business is divided as a matter of property division. In other cases, the business remains unchanged but one spouse buys the other out of his or her share and position. In rare cases, couples opt to remain at their posts and continue to manage the business like they did before the divorce but with additional boundaries and legal protections put into place.
Only you can best understand which route is right for you and your career. If a prenuptial agreement or a business agreement does not dictate that you or your spouse must take a specific course of action in the wake of divorce, it will be up to both of you to determine how to best move forward.
No matter which path you choose in regards to your business, please consult a family law attorney experienced in business matters before signing any financial agreements or contracts in the wake of your divorce. You are entitled to be treated fairly under the law, no matter if you decide to remain with your business, sell your portion or explore some alternative approach.
Source: Entrepreneur, “If You Run a Company Together, What Happens When You Divorce?” Kate Taylor, Feb. 25, 2014