Discover the Three Major Issues Involved in Divorcing When You Own a Business with Your Spouse

Posted on: May 19, 2020

Discover the Three Major Issues Involved in Divorcing When You Own a Business with Your Spouse

Divorce is almost always hard but some divorce processes are more complicated than others. One situation that is always hard is when the couple owns a business together. Keep reading to find out the main three issues your family law attorney will need to take care of and then contact Law Office of Michael L. Fell at (949) 585-9055 for a free legal consultation.

  1. We Will Need to Consider the Management, Operation, and Control of the Businesses While the Divorce is in Process
  2. Divorces are not settled and granted overnight. There will be a period of time, which could be many months, during which you and your spouse will not be together yet you will not be legally divorced either. Ideally, you would be able to have an open and honest discussion about what is best for the business.

    You can then determine who will retain management, who will be in charge of operating the business, and who will maintain control of the business. You may need to get an attorney involved to create documents that make everything official and legally binding.

  3. How the Income from the Business Will Be Distributed During the Divorce
  4. Assuming your business is bringing in income, you will need to determine how that income is going to be distributed while the final agreements of the divorce are completed, signed and official. You will need to determine how that income stream is going to be split and this will be determined largely by the type and amount of income that is coming in, along with who is actually running the business.

    Once again, ideally you would be able to come up with an answer between the two of you. If not, you should get an attorney involved. Once you come up with something, whether on your own or with the help of an attorney, you will need to have documents drawn up to make it all legal.

  5. Determine How the Business Will Be Distributed During the Divorce
  6. Of course, no matter how you distribute income during the divorce process, you will need to determine how to divide the business when the divorce is finalized. You could sell the company and split the proceeds. One spouse could buy out the other. One spouse could take over and pay the other spouse a portion of the monthly profits. Or, if you and your ex get along, you could both continue on at the company. the choice is yours.

We Are Here to Help You Find the Best Way Through This Difficult Situation

When you started a business with your spouse, you likely did not expect that you would ever have to break up that company – just like you likely never thought you would get divorced. Now that you are in the position you are in, you need someone on your side. Call Law Office of Michael L. Fell now at (949) 585-9055 for a free legal consultation.