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Divorcing when you share a business

On Behalf of | Aug 19, 2018 | Family Law |

It is not uncommon for couples in Nebraska to go into business together. Some people even meet through work and may then choose to start their own company as they pursue their personal relationship at the same time. Whether a business was created before or after a couple got married, when the marriage breaks down, it is decision time for the co-owners and soon-to-be former spouses.

As recommended by MarketWatch, these situations can be made simpler if the couple takes the right steps ahead of time. There are several tools that may help to outline provisions for a business in the event of a divorce. These things may also help in case one spouse dies or one person simply chooses not to co-own the business anymore and to pursue other professional endeavors. A prenuptial agreement or a postnuptial agreement are two things couples could consider creating that would allow them to identify plans for a business if a marriage ends.

There are also trusts that can be created that may allow couples and business partners to outline their wishes for a joint venture. Yet another option is a traditional buy-sell agreement that many a partnership has leveraged.

Forbes explains that in general, divorcing couples have three options for their shared business. One is to sell the business entirely to a third party and share the proceeds, if any. If one person wants to retain the company, they may buy the other person out. A third option is to remain business partners even after a divorce. While not a viable option for everyone, some couples are able to make this work.