Getting a divorce is widely recognized as a complex and challenging process. While any divorcing couple will have their own issues in a divorce, business owners often face a unique set of problems to address. While there is a lot that business owners should know about divorce, any divorcing business owner should know how to prepare for the asset division in their divorce. Here are a few tips you can follow if you are trying to prepare for your business division:
Know what your business is worth
Before any negotiations over your business begin, you need to be certain of what it is worth. Make sure you have conducted a business valuation from a reputable source, no matter what you think you already know about the worth. Getting a valuation early can keep you from giving up more than necessary in your divorce.
Do not dismiss a buyout
If both parties in a divorce agree that only one of you should retain the business, it might be the best option for everyone. Negotiations can help a divorcing couple reach an arrangement where the purchasing spouse pays the other in monthly or periodic payments until the purchase has been completed.
While your goal may be to become the sole owner of your business after your divorce, there are multiple ways of making that happen. While a payment plan is common, there are other ways of settling the arrangement. For example, trading other assets that are in the property division in your divorce can act as a substitute for cash. It is not unheard of for a spouse to sell their portion of a business in exchange for ownership of the primary house or vacation home.
Do not go through your division alone
It can be hard to recognize what is a reasonable goal in your division or what a fair offer is. By having a skilled attorney at your side, you can make sure you are making informed decisions about your future rather than flying blind through the process.
By following these tips, you can increase your odds of getting the outcome you deserve in your divorce.