Perhaps one of the most challenging divorces is one that involves a family business owned by both parties. The potential problems are countless. You may have questions like, who is going to keep the business after the divorce? Will both spouses continue to work together? What is the value of the business? What happens while the divorce is pending and business decisions still need to be made while tensions are high? These are all questions that you will almost certainly have in you own a family business and are getting a divorce.
First, understand that this is a scenario that our Divorce Lawyers have handled before. We pride ourselves in giving some of the best legal representation you can find in Utah. The first step is simply to learn what each side wants. It is not that uncommon for one spouse to want to stay in the business while the other wants to get far away. If that is the case, then the divorce will simply be a valuation issue.
What happens when you have two spouses who both want the business that they started together? This is where the challenge comes in. Perhaps neither of you are more entitled than the other to own the business post-divorce. This is rare, as in most cases one party has a better claim on the business. When it does happen, you have two options. First, you may choose to continue to operate the business together but divorced. There is one major problem with this: most divorced couples don’t get along. What will happen when one party remarries? How do you think that will make the other party feel? Such feelings have no place in business.
The second option is a buyout. One party will pay the other half of the value of the business to walk away. This can be done by court order, or by agreement. Typically, what happens is a bidding war. Which party will pay the other more money for the business? For example, the husband may only be willing to pay $100,000 for the business while the wife is willing to pay $150,000. In that scenario, the wife can pay the Husband $150,000 for his share of the business.
If you need a good divorce lawyer in South Jordan or anywhere along the Wasatch front, give us a call. Our team has four attorneys who range in experience from 2 to 28 years.