What happens to a jointly-owned business in divorce?

On Behalf of | Apr 13, 2022 | Family Law |

When a marriage ends in Washington, there are often difficult decisions to be made about the future of a business or even if the business has a future. This is especially true if the business is jointly owned by the spouses. If you are considering divorce, it is important to understand what you should do with the business.

Let one partner buy out the other

This is often the simplest solution in divorce, but it may not be possible if the business isn’t doing well or if one partner can’t afford to buy the other out. However, if the business is doing well and both partners can afford it, this may be the best solution to keep the business running smoothly.

If you decide to go this route, it’s important to have a professional draw up an agreement so that there are no misunderstandings later on.

Sell the business

If neither partner wants to continue running the business, then selling it may be the best option. This can be a difficult decision, but it may be the best way to move on from the business and start fresh.

Keep running the business together

This may be the most difficult option, but it can work if both partners are able to put their differences aside. If you decide to keep running the business together, it’s important to have a solid agreement in place so that you know who is responsible for what and how you’ll make decisions.

If you’re facing the end of your marriage and you own a business with your spouse, these are some important decisions that you may need to make. It’s important to understand your options and make the best decision for you, your spouse, and your business. With careful planning, you can ensure that the business gets taken care of no matter what happens with your marriage.