As a business owner, you know that juggling your company and your family life can be a challenge. While nobody gets married with the idea that they may one day divorce, this is the unpleasant truth for many. If you own a business and are going through the divorce process, it is important to answer this question: how are you going to protect your company?
There may come a time when you realize that you did not take enough steps to protect your business in the event of a divorce. Now that you are faced with this situation, you must consider what to do next. While not always the best option, you may realize that a spousal pay off is the only way to go. Here are some ideas to consider:
-- Pay off your spouse with some shares of your marital assets, which can include real estate, cash, stocks and retirement funds.
-- Sell the business. This is not an option for everybody, but it should at least be considered. When you do this, you can divide the sales price accordingly and then move on.
-- Property settlement note. This allows you to pay off your spouse over the long term to ensure that he or she gets his or her share of the business.
Some of these options allow you to remain in control of your business. Others do not. If you are a business owner who is going through the divorce process, you should understand all of your options in regards to keeping your business in your possession.
Source: Inc., "How to Protect Your Business in a Divorce," accessed July 31, 2015