If you have a small or medium-sized business in Kentucky, you have almost certainly dedicated significant amounts of time to ensure its success. Indeed, many privately-owned companies are truly a family affair, with spouses, children and others playing a role in developing the company. However, this also means that when entrepreneurs decide to divorce, the potential for an impact on their business may be especially troubling. You may have heard stories about companies that were sold off as a result of problematic divorce negotiations or investors that refused to support a promising startup because the founders did not have prenuptial agreements in place.
Business owners can move forward after divorce
However, a successful privately held company can also be the basis for a property division settlement that may satisfy both parties in the divorce while leaving the company intact to move forward. You may be much more involved in the business than your spouse, so it may make sense for you to remain the only owner after the divorce. However, your spouse may have the right to financial compensation for their stake in the business, especially if the company was developed during the marriage. Many couples handle this by providing a greater share of other assets, like the marital home or investment accounts, to the spouse leaving the business in exchange for their share of the company.
Dealing with challenges in a business divorce
Of course, some couples may find that the business is worth much more than all of their other property. In this case, a different agreement may work to settle the issue. You could make a series of set payments to your spouse over a period of time, decreasing their equity stake and providing a form of spousal support as the business is paid off. Others may keep shared ownership of the business but define percentages of control and rules to govern the business relationship moving forward.
You can find solutions to help keep your company in great shape despite a divorce. A family law attorney may help you to reach a settlement on matters like property division and spousal support.