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Splitting a Business in a Divorce: What Are Your Options?

Under Ohio law, assets are split equitably in a divorce. But what about the business you worked so hard to build and maintain? Could you lose it all in a divorce?

Anything is possible, especially if the business is considered a marital asset. In most cases, your business will be considered marital, even if you technically started it before you got married. That’s because businesses tend to grow over time, and that growth could be considered marital property.

Your ex-spouse could decide they want a share of your company. But you don’t have to lose your hard-earned business. There are other options available. An Ohio executive divorce lawyer can assess your situation. 

Offer a Different Asset

Instead of giving up part of your business, you could offer a different asset with a similar value. For example, if your business is worth $400,000, then your spouse would be entitled to half of that, or $200,000. You can offer up that $200,000 in another way, such as investments, cash, or some other asset. You may need to sell assets in order to come up with this sum of money, but it would likely be better than having to give up half of your business.

Divide the Business

If you and your spouse both work at the business, whether as partners or in some other capacity (for example, you may own a medical practice and your spouse may be a bookkeeper), then it may make sense to divide the business. However, you would still have to work together after a divorce, so that may make things awkward. 

Buy-Out Your Spouse

If you don’t have any other marital assets, then you may have to resort to buying out your spouse. This is not the best option, as you will likely have to take out a loan in order to do so, but it’s preferable to having your spouse as a partner. 

Sell the Business

This is not the ideal situation. However, if your business is doing poorly and there’s not enough clientele to keep things operational, then selling it may be your best option. You and your spouse can split the proceeds and you can both simply walk away with the money and start a new endeavor if you’d like. If your business is growing, though, you want to avoid a sale if at all possible.

Speak with an Ohio Executive Divorce Lawyer Today

Dealing with a business in a divorce is not an easy situation. You can’t just split a business down the middle. You may not realize that your ex-spouse can easily get a piece of the business, even if they have never contributed any time or money to it in the past. 
Is your business marital property? What will happen to it in a divorce?

The Ohio Executive Divorce lawyers at Lawrence Law Office can help you understand your options. Find the solution that works best for you. Call us today at 614-228-3664 or fill out the online form.

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