Divorce is challenging under any circumstances, but it becomes particularly complex when a couple owns a business together. Here are the three major issues that your family law attorney will need to address. For personalized guidance, contact Law Office of Michael L. Fell at 949-585-9055 for a free legal consultation.
Managing the Business During the Divorce Process
Divorces are rarely settled overnight. During the months-long process, you and your spouse will need to decide how to manage your business. Ideally, you can have an open and honest discussion about what is best for the business.
Considering Management, Operation, and Control
You will need to determine who will retain management, who will be in charge of daily operations, and who will maintain overall control of the business. Legal documents may need to be created to make these decisions official and binding, ensuring that the business runs smoothly and without disputes during the divorce proceedings.
Distributing Business Income During the Divorce
If your business generates income, you must decide how that income will be distributed while the divorce is being finalized. This will largely depend on the type and amount of income, as well as who is actively running the business.
How to Handle Business Income Distribution
Ideally, you and your spouse can agree on a fair distribution. If not, involving an attorney is advisable. Once a decision is reached, it should be documented legally to prevent any future conflicts. Ensuring a clear and fair distribution of income helps maintain financial stability for both parties during the divorce process.
Dividing the Business After the Divorce
No matter how you handle income during the divorce, the final division of the business must be decided. There are several options:
- Selling the Business: You could sell the company and split the proceeds.
- Buyout: One spouse could buy out the other’s share.
- Profit Sharing: One spouse could take over the business and pay the other a portion of the monthly profits.
- Joint Operation: If amicable, both spouses could continue running the business together.
Each option has its benefits and challenges, and the best choice depends on your specific situation and relationship dynamics.
Finding the Best Path Forward
When you started a business with your spouse, divorce was likely the last thing on your mind. Now that you find yourself in this situation, it’s essential to have someone on your side who understands the complexities involved.
Expert Legal Support
At Law Office of Michael L. Fell, we are committed to helping you navigate this difficult process. Our experienced attorneys will work with you to find the best way to manage and divide your business, ensuring that your interests are protected.
Contact Law Office of Michael L. Fell at 949-585-9055 for a free legal consultation. We are here to provide the support and guidance you need to move forward confidently and secure the best possible outcome for your future.