What options exist now that I’m divorcing my business partner?
You and your spouse have been running a business together for decades. Nevertheless, some tension has grown between you two for years, and you save arguments until after closing time so that your customers do not notice. Eventually, you both decide the stress is too much to take and plan on divorcing.
A Marriage.com report states that the divorce rate for married business partners lies between 43 and 48 percent. Some causes include cash flow issues, disputes over business decisions and balancing business/family obligations.
Regardless of the fights you and your spouse had, you’re reluctant to let go of your business since it’s popular with the locals. (Plus, both you and your spouse are attached to it.) You wonder if there’s a way for you to dissolve your marriage while keeping your beloved company running. Fortunately, there are options for you to utilize, and here are three of them.
Continue to run the business together
Some couples divorce and remain good friends. If that’s the case with you and your spouse, you don’t really have to change anything except your marriage status.
One of you becomes a silent partner
A silent partner provides capital to a business and plays little to no role in business operations. Note that your company has to be registered as a limited liability or general partnership before you consider going this route.
Hand the business over to a trusted loved one
If you have adult children or a relative who doesn’t mind picking up where you left off, think about handing your company to them. (Just make sure they’re responsible and possess business acumen first.)
Being divorced is difficult enough to deal with, especially with a business at stake. If you have questions about property division, reach out to legal guidance for help.