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Divorce and business buyouts

On Behalf of | Sep 27, 2021 | Divorce

Divorce can be a complex legal process. Without a business partnership, a couple only has to worry about assets acquired during marriage. But what happens to couples who are business partners? What happens to their business after or during a divorce?

Although there are no laws that prohibit a divorcing couple from sharing their business ownership, it is possible for former lovers to decide they want to preclude themselves from any sort of emotional or financial dependence on their former partner. These individuals often choose to separate professionally and personally. How does this happen?

Few and far between

Sometimes, a divorcing couple can still form a business partnership. Although the couple decided after a period of cohabitation that they could not make compatible partners, continuing business could still be valuable.

Exceptional cases like this may allow a couple to continue a professional working relationship, even though they are divorcing.

Buying and selling

It is not too common to find ex-partners who want to continue in a professional relationship. A lot of divorcing couples with joint ventures and business assets can choose to end these relationships for a myriad of reasons.

A business buyout is a common way for a couple to end their professional relationship. The buyout could be done in the usual fashion with the primary partner purchasing the secondary partner with a lump amount of cash or through an exchange of equally high-valued assets.

There are other options for divorcing spouses who are not able to make large purchases during divorce proceedings. The primary business owner might take out a loan in order to buy their ex-partner, or the divorcing couple could decide to purchase the company via monthly payments over a set period.

Though few people can say divorce is a simple and clean process, divorcing with a business relationship is not as easy as divorce from a personal one. While it is possible for divorcing couples to continue business relationships, this option is not available for those who are more likely to want to end all relations.

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