If you and your spouse own a business together, then it is a marital asset. For instance, maybe the two of you got married 10 years ago and started a business two years into the marriage. You both left your corporate jobs to run the business together.
This becomes important if you are going through a divorce, as marital assets have to go through property division. Many couples end up selling their business at this time. If you sell the company, then you can split up the financial assets you have acquired.
Unfortunately, this also means you lose the business that you have built. So what are some other potential options?
One person becomes the sole owner
Another option is for one of you to purchase the other spouse’s share and become the sole owner of that company moving forward.
For example, maybe you are fine with leaving the business, but your spouse wants to keep it. They may allow you to have other marital assets, like the family home or a retirement account, in exchange for allowing them to keep 100% of the business.
Both of you continue working together
Another thing to remember is that, if you are on good terms professionally, you can keep working together even after a divorce.
For some couples, this would be too difficult from an emotional perspective, so it is not an option. But other couples have amicably agreed to end their romantic relationship while continuing to work together in a professional setting. You can simply remain co-owners.
No matter what you decide to do, it is very important to understand all of your rights during property division to protect the assets that you own.
