If you co-own a business with your spouse, it is likely because you both shared a passion for it, and each of you brought something to the company. For example, perhaps you are the creative mind behind the business, while your spouse is particularly good at keeping the paperwork and finances organized. It is a partnership that has worked until you broach the topic of divorce.
When couples own a business together and they then get divorced, they have many options when deciding what to do with the company. They can divide it during property division hearings, or they can keep running it together. This is a big decision and one that is certainly not right for every situation. So, how do you know if this is right for you? Below, our Delaware divorce lawyer outlines the pros and cons of this option.
Pros of Co-Owning a Business with Your Former Spouse
There are many advantages that come with continuing to co-own a business with your former spouse. They include:
- Continued employment: Divorce is expensive and facing life afterward without an income only makes it harder. By keeping your business, you both also keep your jobs.
- Investments are not wasted: When creating your company, you invested a great deal of time and money into it. By keeping your business, these efforts are not wasted and you can continue to make your company a priority.
- Less stress: Initially, it may sound as though working with your ex-spouse will only bring more stress to your life. However, selling a business is stressful. You must obtain an appraisal to value the business and find the right buyer, among other things.
- Continued business success: Of course, the biggest benefit that comes with co-owning a business with your spouse is that the business continues running. There will be little if any, interruption in its operations and you and your spouse can both continue to see success.
Cons of Co-Owning a Business with Your Former Spouse
Some of the downsides of owning a business with your ex-spouse are obvious, while others are not. The biggest drawbacks include:
- Not a clean split: If you were hoping for a clean break from your spouse after the divorce, owning a business together will make that impossible. You will have to still work tougher and rely on each other. Many people find this too challenging, mentally and emotionally.
- Lack of trust: Business partnerships are only as good as the trust between the two partners. If your marriage has broken down, you may have lost some trust in your partner, which might hurt the business.
Our Divorce Lawyer in Delaware Can Help You Make an Informed Decision
If you own a business with your spouse and are now ending your marriage, our Delaware divorce lawyer at Lawrence Law Office can help you decide what to do with the company. Call us now at 614-228-3664 or contact us online to schedule a consultation and to learn more about your legal options.