Know your options when you divorce your business partner

Some South Carolina couples are partners in marriage and business. If you share both your personal and professional lives, you may wonder how to handle your business divorce. 

We have helped people going through divorce manage the complexities of asset division. 

Your first step is to value your business 

Forbes advises divorcing couples to determine the value of their company. Emotions may make it difficult to arrive at an objective valuation, so you may wish to have your business appraised by an independent third-party. 

You have options for moving forward 

After you have established the company’s value, you will likely choose among three different routes for dealing with your joint enterprise: 

  • You may keep the business as a couple and continue to operate it together. This choice may present some challenges, as you and your ex-partner juggle the emotions of divorce with the pressures of running a business. 
  • You may sell the assets and share the sales proceeds. A sale might provide you with financial resources to retire or start a new venture or career. However, it can take some time to close a sale. In the meantime, you may find it necessary to reach agreement about operating the business until it sells. 
  • Your or your ex-spouse may buy out the interest of the other person. Divorcing couples are most likely to choose this option. You may realize some tax benefits, as the purchase of interests may be a non-taxable transfer “incident to divorce.” It is also possible for the company to purchase the ownership interests, but the transaction might generate taxable capital gains. 

When your business is at stake in a divorce, you need a plan that satisfies your personal and business goals. You may consult our website for additional information about managing the financial and property division aspects of divorce.