{"id":1207,"date":"2019-09-05T07:30:47","date_gmt":"2019-09-05T14:30:47","guid":{"rendered":"https:\/\/ogbornelaw.com\/?p=1207"},"modified":"2023-07-21T19:25:29","modified_gmt":"2023-07-21T19:25:29","slug":"what-happens-to-your-business-in-divorce","status":"publish","type":"post","link":"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/","title":{"rendered":"What Happens To Your Business In Divorce?"},"content":{"rendered":"<p>Some people have two or even three families. You have your home family, your work family, and maybe a church family as well. If you own a small- to medium-size business, your family members can include partners, shareholders, and employees. When the right precautions aren\u2019t in place, you can jeopardize your business in a divorce.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#Options_for_Your_Family_Business_in_Divorce\" >Options for Your Family Business in Divorce<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#1_Buy_your_spouses_half_of_the_company_sell_your_half\" >1. Buy your spouse\u2019s half of the company; sell your half<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#2_Dissolve_the_marriage_continue_business_co-ownership\" >2. Dissolve the marriage; continue business co-ownership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#3_Sell_the_company\" >3. Sell the company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#When_the_Business_in_Divorce_is_Your_Business\" >When the Business in Divorce is Your Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#When_Your_Business_is_a_Liability_in_a_Divorce\" >When Your Business is a Liability in a Divorce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/webtechs-designs.com\/2023Ogborne\/what-happens-to-your-business-in-divorce\/#Arizonas_Business_and_Collaborative_Divorce_Attorney\" >Arizona\u2019s Business and Collaborative Divorce Attorney<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Options_for_Your_Family_Business_in_Divorce\"><\/span>Options for Your Family Business in Divorce<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You have choices, and if you share the same values, you can weather the storm of divorce with dignity and respect. You can also do what\u2019s best for you, your partner, and the people who depend on you. Your options include:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Buy_your_spouses_half_of_the_company_sell_your_half\"><\/span>1. Buy your spouse\u2019s half of the company; sell your half<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>From a legal and financial standpoint, your business is simply another asset. It has debts, taxes, property, equipment\u2026 all the same things as your marriage. For each of you to get a fair share, you must divide it. You will\u00a0hire a business appraiser to determine your company\u2019s value.<\/p>\n<p>Your \u201cpayoff\u201d to your spouse may be arranged in one lump sum or in monthly payments. You may arrange to trade other assets that are equal in value to your spouse\u2019s half. You may also be the spouse that is willing to sell your half of the business, and the same options apply. In either case, you may want <a href=\"https:\/\/ogbornelaw.com\/top-6-legal-documents-you-need-to-start-your-business\/\">a non-competition agreement<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Dissolve_the_marriage_continue_business_co-ownership\"><\/span>2. Dissolve the marriage; continue business co-ownership<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Co-ownership won\u2019t work if you can\u2019t maintain a friendly relationship with your ex. If you think you and your ex can\u00a0manage your company together, that may be\u00a0the best option. You both can keep your individual interests in the company. \u201cAnother benefit,\u201d says <em>Forbes<\/em>, \u201cIs that there\u2019s no need for a valuation of the business, which can be an exceptionally expensive process.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Sell_the_company\"><\/span>3. Sell the company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You will hire a business appraiser and determine an appropriate selling price. The good news is, you can use your revenue from the sale of your company to start another company. The bad news is, if it doesn\u2019t sell immediately, you\u2019re forced to continue working with your ex longer than you\u2019d like.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_the_Business_in_Divorce_is_Your_Business\"><\/span>When the Business in Divorce is <em>Your<\/em> Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even if you founded and managed your company with no spousal involvement, it may still be considered a marital asset. This alone is one of the best reasons for <a href=\"https:\/\/ogbornelaw.com\/services\/marital-agreements\/\" data-cke-saved-href=\"https:\/\/ogbornelaw.com\/services\/marital-agreements\/\">a pre- or post-nuptial agreement<\/a>. Your first step is to determine if your business is indeed a separate asset.<\/p>\n<p>You may have business partners. The best-case divorce scenario is that you have a <a href=\"https:\/\/ogbornelaw.com\/prenuptial-agreements-for-small-business-owners\/\" data-cke-saved-href=\"https:\/\/ogbornelaw.com\/prenuptial-agreements-for-small-business-owners\/\">marital agreement specifying your business ownership terms<\/a> and also a <a href=\"https:\/\/ogbornelaw.com\/category\/business\/\" data-cke-saved-href=\"https:\/\/ogbornelaw.com\/category\/business\/\">contract with your business partner(s)<\/a>.<\/p>\n<p>Your next step is to determine how much of your organization you own. For example, if you own half, then your half may be a marital or separate asset. If it\u2019s a separate asset, your partners and employees shouldn\u2019t be impacted.<\/p>\n<p>If you started your company after your marriage and without a <a href=\"https:\/\/ogbornelaw.com\/how-a-postnuptial-agreement-can-save-your-marriage\/\" data-cke-saved-href=\"https:\/\/ogbornelaw.com\/how-a-postnuptial-agreement-can-save-your-marriage\/\">post-nuptial agreement<\/a> with your spouse, your divorce may get tricky. Your organization is an asset and also a source of income. This may impact your financial business in a divorce.<\/p>\n<p>Many financial factors can impact divorce when you own a business. For example, in Arizona, if the Court determines you will pay spousal support, the number of years you\u2019ve been married will be a consideration.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_Your_Business_is_a_Liability_in_a_Divorce\"><\/span>When Your Business is a Liability in a Divorce<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Again, your ownership of the business as a separate or marital asset\/liability must be determined. You will want your divorce documents to spell-out your ex\u2019s role in current and future debts and liabilities. In a perfect world, you\u2019ll have an <a href=\"https:\/\/ogbornelaw.com\/\" data-cke-saved-href=\"https:\/\/ogbornelaw.com\/\">Arizona attorney that specializes in business law and divorce<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Arizonas_Business_and_Collaborative_Divorce_Attorney\"><\/span>Arizona\u2019s Business and Collaborative Divorce Attorney<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ogborne Law, PLC specializes in several types of legal and mediation services. We can help you protect your business before your marriage, during marriage, and even during divorce. Michelle Ogborne specializes in Arizona collaborative divorce, a family-first approach to divorce. <a href=\"https:\/\/ogbornelaw.com\/contact\/\" data-cke-saved-href=\"https:\/\/ogbornelaw.com\/contact\/\">Contact Ogborne Law<\/a> if you have questions about marital responsibilities regarding your business in a divorce.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arizona business in divorce can be complicated at best. Read about some of the options for divorcing business owner.<\/p>\n","protected":false},"author":3,"featured_media":11310,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,30],"tags":[],"class_list":["post-1207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-divorce","category-45","category-30","description-off"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Happens To Your Business In Divorce? - Ogborne Law, PLC<\/title>\n<meta name=\"description\" content=\"Arizona business in divorce can be complicated at best. 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