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Dividing Business Assets in Divorce

Options for Dividing a Business in a Divorce Settlement

When getting divorced, one of the most pressing issues is how to divide assets and liabilities. This includes any business that you or your spouse own jointly. Knowing what options are available can help make the process smoother and less stressful. 

Determine the Value

Quite often one of the first steps is to determine the value of the business. This is done through a qualified business valuation expert. They will gather quite of bit of information about the company and then complete a valuation so that you and your spouse can better understand the value of the business.

Buyout Option

In cases where one spouse holds a greater share of the business than the other, there is an option to facilitate a buyout, allowing for a fair division of the company’s ownership. This can be achieved through a cash buyout or the transfer of properties, depending on the preferences and financial circumstances of both parties involved.

Partnership Agreement 

In some cases, one spouse may not want to take control of a business but still wants to have a stake in it. In such a scenario, a partnership agreement emerges as the most suitable choice. This type of arrangement provides an avenue for both spouses to sustain involvement in the business and establish mutual consensus on profit distribution.

Sale of Business Assets 

If neither spouse wishes to retain their respective share of the business, they can choose to sell off the assets and distribute the proceeds from the sale. This can be a favorable choice, especially when there is a lack of potential buyers for the entire business. By liquidating the assets and dividing the resulting funds, both parties can effectively dissolve their ownership interests and move forward with their individual financial goals.

Liquidation of Business Assets 

In some cases, it may not be possible or feasible to sell off a business’s assets in one piece. In this situation, liquidation would be an option. This involves selling off individual assets in order to generate cash. This can help make the process of dividing up business assets easier and more efficient.

Talking with a Financial Advisor 

It’s always a good idea to talk with a financial advisor before making any decisions about how to divide up your business during divorce proceedings. A financial advisor will be able to provide valuable insight and advice on which option may be best for you and your spouse, based on the specifics of your situation. Not only will they help you make an informed decision, but they can also ensure that the process goes as smoothly as possible. 

Overall, it is important to remember that dividing up a business during divorce proceedings is not always an easy task. However understanding the various options available can make it less overwhelming and help ensure a fairer outcome for both parties. 

Work with us

If you have more questions about child support in divorce, our team is here to help you every step of the way.  At Purposeful Wealth Advisors, we work closely with divorce attorneys, accountants, and other dedicated professionals to arrive at comprehensive solutions for our clients. 

Contact us today to know more!


The foregoing information has been obtained from sources considered to be reliable, but
we do not guarantee that it is accurate or complete, it is not a statement of all available
data necessary for making an investment decision, and it does not constitute a
recommendation. Any opinions are those of Purposeful Wealth Advisors and not
necessarily those of Raymond James.