Divorce in Indiana is a messy situation for the involved parties. Thus, having a family-owned business in the mix makes the process even more excruciating. Together with your spouse, you need to figure out how to make things easier while dividing your assets. While setting up the business, it’s obvious that divorce isn’t in your mind. After all, you were planning for a “till death do us together live.” However, you need to start planning on your living alone and how you’ll manage the business. Here are ways to handle a private company that you owned with your spouse.
Continue co-owning the business
Most people would agree that co-owning a business with an ex-spouse is still manageable after a divorce. If you deem this as the best option, then go for it since it has several benefits. First, you will still benefit from the interests generated by the business. Secondly, you’ll escape valuation. Valuation might be expensive, depending on the nature of the company. Selecting this option, however, means that you’ll keep in contact with your ex-partner.
Buy your spouse’s portion of the business
Since you co-own the business with your partner, you can decide to purchase your spouse’s share of the company. This method involves hiring an appraiser who’ll evaluate the business. Although the technique is expensive, you get to manage the business alone. Apart from buying your spouse’s share from the company, you can also exchange his or her share with an asset that you own.
Selling the business
Finally, you can sell the business and share the profit with your spouse. If you choose this option, you’ll still need to hire an appraiser who’ll evaluate the business. If the company sells immediately, each partner gets the shares immediately. However, you’ll continue working together if the company is on the market for a longer time.
If you wish to know the best method to choose in handling the business, you can contact an attorney for more guidance.