Dealing with a Closely Held Business in a Divorce
One of the ways in which a divorce may become incredibly complex is when there is a closely held business involved. Both spouses may share ownership of the business in question, and if it has provided income to the family, it may become part of the property division process.
There are a few different ways to approach the issue of a closely held business as you move ahead with your divorce in Connecticut:
- Co-ownership — This might be a good option if you and your spouse can maintain an amicable relationship after your divorce is finalized. It can be extremely difficult to continue to work alongside your former partner during and after divorce, however, as the disputes that impacted your marriage tend to resurface when you run a business together.
- Sell the business — Selling could allow both you and your ex to profit from one-half of the proceeds, and you could invest the money in your own venture later on. This process can take a long time, however, and it could be months before you find a buyer for your business.
- Purchase the other spouse’s interest — In this arrangement, one spouse retains ownership of the business by purchasing the other’s share. The spouse making the purchase can do so outright or by offsetting it with other assets like home equity, 401(k)s, IRAs and certain types of securities.
Figuring out how to deal with a closely held business in a divorce is never easy, and it takes a skilled legal professional to examine the situation and determine your best steps moving forward. Consult an attorney to learn more about your options in Connecticut.