Family law: What to do with a family business during divorce

| Mar 27, 2019 | Family Law |

Some entrepreneurs like to work solo while others prefer to work on joint ventures. For the latter who chose to go into business with their spouse, the topic of divorce can produce some unsettling concerns. Married couples who are also business partners will need to deal with some unique Michigan family law issues, particularly in regard to property division.

Unlike in a situation where one spouse owns a business and the other does not participate in owning or running the operation, a family-owned business generally involves both spouses. This means that married business partners will need to decide how to continue running their business after a divorce. The most common choice is for one spouse to keep the business, usually through buying the ex out of his or her share.

Running the business solo is not always ideal, though. Instead, some couples may choose to sell off their business altogether and then split the profit. This process can take a significant amount of time and may lengthen divorce proceedings. A third option involves divorced couples to continue jointly running their business. This option can be difficult for some, but others might find that they simply work better as business partners than as a married couple.

Whether a Michigan couple decides to sell their business, keep running it together or leave it to one person, getting the business accurately valued by a third-party is essential. The value of a business can help divorcing couples make the most informed decision possible, which is usually a good idea when dealing with family law matters. However, having all of the necessary information at hand might not be enough for those who cannot fully make sense of everything. In those situations, speaking with an experienced attorney for guidance can be helpful.

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