Dividing your assets in a divorce means handling every asset you own, even your business. Depending on the type and size of the business, this may be a complicated process. Many factors might affect your final decision on how to handle the business division. However, you must keep in mind that the Maryland court may expect you to have a solution before your divorce is final.
Forbes explains there are three options for managing a business as an asset in your divorce. You need to consider which is the best for the business, your situation and your finances. Before you make any decision, it may help to get an appraisal of the company so you know the value of this asset.
1. Sell the business
The first option you have is to sell the business and split the profit. This might work if you do not want to keep it or you need the money. However, selling a business takes time, and it may draw out the length of your divorce. Also, you lose the company, which may be something you are not willing to do.
2. One of you keeps the business
If you have a lot invested in the business, you may want to keep it. This is the most common option, but it means coming up with the money to buy out your spouse’s half of the business. You may not have the money to do so. You can try using other marital assets to pay off your spouse or consider creating a payment agreement that lets you make payments over time.
3. Share the business
This is the easiest option in that it requires no money to change hands and no general changes in the business. If you can do this, then it might be the right answer, but many couples find it is difficult to continue working together.
Whatever choice you make about your business, you need to decide what is best and makes the most sense for your situation.