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Business owners and divorce

On Behalf of | Nov 1, 2019 | Divorce, Firm News |

When couples living in Oregon decide to divorce, financial issues often take center stage. A couple must decide how to divide their debts and assets and make decisions regarding ongoing financial support. If the couple owns a business together, or either spouse is a business owner, these negotiations can quickly become complex.

When a marriage ends, there are few aspects of a couple’s life that do not come under scrutiny. Business ownership, in particular, can create significant tension as spouses seek to value the business and determine who retains ownership of the company.

Depending on how a business is organized, the divorce of a business owner or partner may result in an ex-spouse receiving a share of the company. This can create significant issues within an organization that may find itself attempting to work with an individual who had little involvement with the business before becoming a full partner.

Entrepreneurs may also find themselves under a significant amount of stress when going through a divorce. This is because they are attempting to lead a business while their finances are strained.

Divorcing business owners will sometimes take action to prevent or address issues such as these from happening. A spouse who is a partner in a business may agree to a buy-out from other partners to prevent an ex-spouse from taking a share in the divorce. Couples who own a business together may agree to sell the company and split the proceeds equitably.

Individuals who are concerned about their businesses after a divorce should consider speaking with an experienced family law attorney. The lawyer may review his or her client’s situation and make recommendations regarding asset division, support and how to manage the business post-divorce.