When you work your way through a Minnesota divorce, you need to figure out the value of certain assets so that you may determine how to divide them. This is easier with some assets than others. If you and your one-time partner have ownership interests in a private business, asset division may prove a bit more complex.
There are several methods you may want to use when it comes to dividing private business ownership interests in a divorce. To do so, consider taking one of the following three steps.
1. Have one party buy out the other
The most common method former couples use to split business ownership interests is to have one party buy the other out. This does not work in all cases, though. It requires one of you to have enough cash or liquid assets available to purchase the other party’s share.
2. Continue to co-own the business
If the relationship between you and your former partner is not an ugly one, the two of you may be able to continue to own the business together after your split. This is not a particularly common option, but it does work for some former couples.
3. Sell the business
Selling your jointly owned business and dividing up the proceeds between you allows you to make a good, clean break from one another. However, if you and your spouse are not in agreement about selling the business, one of you may need to secure a court order to move forward.
Deciding what option might serve your needs most effectively takes time. You may want to consult tax advisors, wealth managers or others before making a final decision.