The divorce process is quite complex, and it is important to understand the various aspects of it. For divorcing parties who own a business together, there are additional aspects to consider.
To complete the divorce properly and efficiently, it is beneficial to understand the steps one must take. In regards to the division of a business during divorce, there are a few key steps in the process.
Determining the value of the business is the first step, and is quite critical to the rest of the process. Parties should hire a professional appraiser to evaluate the business. To aid in the endeavor, parties should gather and present all business financials. After appraisal completion, parties can confidently move forward in determining a proper settlement amount.
Depending upon the relationship of the divorcing parties before and after the divorce, there are a few options to consider in regards to the future operation of the business. If one party primarily handles business operations, the two may choose to allow that person to keep running the business and either buy out the other party or make the other person a silent partner. On the other hand, if both parties contribute to the business, they may choose to continue running the business together. However, if the parties have a tumultuous time trying to continue working together after splitting, it may be best to sell the company.
Solidify the agreement
Whichever situation parties choose to pursue, it is important to get the new agreement in writing. As with any other legal document, all parties should sign it and submit it to the court. For those choosing to sell the property, it is important to note that certain aspects of the agreement will not go into place until the actual sale of the property is final.
Understanding and properly engaging in these steps can aid in making this aspect of divorce smoother. In general, it is best when divorcing parties can work together to reach decisions about their divorce.