If you own a business with your spouse in North Carolina and you divorce, the process of splitting assets and possessions becomes even more complicated. As you divide your belongings and determine what will happen with your children, you have several options regarding how you can handle the business after a split.
According to Forbes Magazine, some partners can continue to work together even after the divorce. Before you make this decision, you must have the utmost confidence that you can continue doing it without any additional stress or strife. If this is not something you feel you should do, you may want to dissolve your business, or one partner can buy out the other.
Even if one of you prefers to keep the business, if the cash flow is not there to maintain or you cannot negotiate a deferred, long-term payout schedule, you may still be forced to sell. As you determine if you should buy out your partner in a business where you both play an integral leadership role, consider the fact that one of you leaving may impact the morale, sales and production of your products or services.
For those who determine to buy the other partner out, they should consider a few important things. A valuation expert or broker should be brought in to assess the value of the business. Consider whether you require a non-compete agreement, in case the partner who is leaving decides to start a similar company.
Those who decide to dissolve the business must consider when the ideal timeline is for selling. If cash flow is an issue, you may be forced to sell before you are ready. Determine what your minimum offer will be and what the terms of the dissolution will be before you start the negotiation.
Whether you buy out your partner, dissolve the business or keep working together, it is important that you make rational, unemotional decisions. This protects your business and income after the dust has settled.
This information is for educational purposes and should not be interpreted as legal advice.