Divorces are tough no matter the circumstances, but when a family business is involved, matters become even more complicated. Not only do you have to decide who gets what regarding your personal items, but you also have to contend with how your livelihood will be affected. At Simpson Legal Group, LLC, we assist business owners facing a divorce in navigating the process, so they best protect themselves and their source of income.
Decide What You Both Want
The first matter to address is what you and your soon-to-be-former spouse would like to see occur with the business. How your business came into being is important to consider at this juncture. Did one of you inherit it? Was it started from a gift one of you received? This can make a difference as Iowa is an equitable distribution state, but gifts and inheritances received by one spouse may not be considered marital property. If you have any questions about this, an attorney at our firm can assist you in determining whether or not your business is considered marital property and subject to equitable distribution.
Sell the Business to a Third Party
If you and your ex do not get along well, it may be in both of your best interests to sell the business to a third party and split the profit. This way, you can move forward without frequent dealings and discussions regarding the business in the future.
Buy Out Your Spouse’s Interest
Perhaps the business means a lot more to you or your spouse, or only one of you has the licensing and training needed to operate the business on your own. In a case like this, having a business valuation is crucial. Once the valuation is conducted, the spouse purchasing the business can pay the other spouse their fair share of the business’s value in return for total ownership.
Continue to Share Ownership
Perhaps neither you nor your ex wants to give up their rights in the business, and you believe you can move forward together with your shared enterprise even though you are divorcing. In a case like this, continuing to own the business together is a possible solution. However, keep in mind that maintaining an amicable working relationship with a former spouse may not be possible for one or both of you, so do not pursue this option unless you have faith it will work and an alternative solution in the event it does not.
Speak With A Family Lawyer at Simpson Legal Group, LLC
Facing a divorce when you have a family business is a daunting prospect. Fortunately, it is not something you must go through alone. Contact an experienced family law attorney at our firm, Simpson Legal Group, LLC, to find out more regarding your options and the best way to move forward. To schedule a consultation, call us at 712-256-9899 or reach out via our contact page.