Informative Ways of Splitting Up a Business After Divorce
You find that the rate of divorce in the US is being put at 40-50%. But when people separate sharing family property is always challenging. Discussed herein are some of the tips for splitting up a business after a divorce.
One of the things that you should start with is business valuation. One good thing with this is that it will help you in knowing the value under scrutiny and you should settle for a neutral auditor. With this you will be in a position to get the figures right and avoid more trouble. You find that business valuation depends on the following; property assets or stock, business earnings in terms of profits as well as the type of business.
The next tip is to seek legal assistance. Where you will have to seek commercial or property attorney and present your figures and facts. Of which the attorney will go through your details and come up with the appropriate solutions. You find that the attorney can help you with issues of tax, ownership transfer, licenses and permits. In case you need help, this law firm can help with divorce cases to ensure a seamless process.
Apart from that, you should also decide whether to spit or keep the business. You find that you might be divorcing your business and not your wife. One thing that you can do is for both of you to agree on what to do with the business which can backfire because you are still at loggerheads.
Not only that but you should also sell the business to a third party. You find that most of the divorcing families always prefer selling the business than splitting it. Having done that you should share the proceeds according to divorce provisions.
Besides, you should also buy out your partner. At some point it might not be an option to sell the business as a result of the complications with the divorce process. Here one partner probably the husband will buy wife’s stake and own 100% stake of the business.
You should also think of joint ownership. It is essential to note that it looks funny to have joint ownership after a divorce. One thing that I can tell you though is that when the divorce process was not messy and you still have a good relationship with your partner there is nothing that will prevent you from having joint ownership.
Last but not least, you should also place the business under the trust. Here the couple will have to formalize an agreement to run the business on their behalf after the divorce. You should know that the asset protection trust will be able to control the business and remit benefits to the partners.
More ideas: my explanation