Brooklyn, NY – There are some wealthy couples who may have ownership of an important business during their marriage. When they separate, this can create issues in terms of how the business will be handled, especially considering that a business cannot be divided in the same way as many other types of property. The first step in this process is normally to get a valuation of the business, then the couple will need to decide on whether to simply sell it off or come up with other methods to handle their business interests. Before deciding on any course of action, each member of the couple should consult with their own attorney to explore their options and any tax consequences.
Selling a business then dividing the profits
This method to divide a business is similar to other types of property such as houses. The couple can liquidate the business, then divide whatever profits are remaining after its sale. The main difficulties with selling a business are usually related to finding an interested buyer who is willing to pay a fair amount quickly enough during the divorce process. However, the positive aspect of a sale is that the couple no longer has any obligation to the business or a need to interact with each other after the business has been liquidated.
Buying the other spouse out
One spouse can pay for the other spouse’s equity in the business and retain ownership. This is actually the most common method for divorcing couples to handle their shared business interests, as it is versatile and can be done quickly. Sometimes, other forms of property can even be used as payment for the share of the business, such as giving up a share of a home or cars. The couple can also arrange for the purchasing spouse to make payments over time if the cash or assets for the buyout are not immediately available.
In other situations, the couple may decide to continue to run their business together, even if they are no longer married. This is commonly referred to as co-ownership. If a couple feels that they can work together even after a divorce, they may make few or no changes to their business. Other couples who prefer joint ownership may delegate responsibilities to others so they spend little to no time working together or around each other.
Advice from family lawyers in New York
Elliot Green Law Offices is a family law practice that assists people in the Brooklyn area. Anyone who needs assistance with divorce, property division, child custody, or related issues can get in touch with the firm to learn more.
Firm contact info:
32 Court Street, Suite 404, Brooklyn, NY, 11201