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If a couple wants to end their marriage, dividing relatively inconsequential assets like possessions and even vehicles may be fairly straightforward. When it comes to splitting major assets like real estate or joint business ventures, though, the situation becomes inherently more complicated. If you founded a company with your spouse and have decided to end the marriage, a strategic divorce attorney can help you decide which of the following approaches is worth pursuing. 

Commencing a Buy Out

During divorce proceedings, business buyouts are similar to real estate buyouts. If one party wants to retain ownership of the asset in question, he or she can buy out the other party’s financial interest. If the spouse retaining ownership does not have enough liquid cash to cover the buyout, it may be possible to secure financing, relinquish another marital asset of equal value, or devise some kind of payment arrangement with the other spouse.

Selling the Company

divorce attorneySelling the company and splitting the profits is another valid way to divide a jointly owned business in divorce. Many couples prefer this approach because it essentially provides a clean slate by eliminating all ties between them. However, this strategy will only work if they can actually find a buyer. Otherwise, the couple will have to liquidate the company if neither wants to retain sole ownership. 

Running the Business Together

Although some couples can continue running their joint business together after divorce, many find this to be the least favorable approach. Even if you anticipate an amicable split, it’s only natural to want a fresh start after ending your marriage. Additionally, there is no way to predict how your ex will act should you start dating again. If any kind of dispute arises in the aftermath of divorce, it could ultimately threaten the business. For this reason, divorce attorneys rarely advise clients to continue co-owning a company with their ex. 

 

The divorce attorneys at Pater, Pater & Halverson are proud to fight tirelessly on behalf of their clients during settlement negotiations. Located in Hamilton, OH, their seasoned team has more than 90 years of combined experience practicing law. In addition to resolving complicated divorce disputes, they also assist with estate planning, personal injury suits, business formation, and criminal defense. Visit their website to learn more about their knowledgeable divorce attorneys. Then, call (513) 867-1411 to schedule an initial consultation. 

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