Owning a business can mean that a couple in Ohio has an additional complication when it comes to dividing property in a divorce. The first step they will need to take is having the company valuated. Once they know what the company is worth, they might want to sell it, but one person might also buy out the other, or they might continue to run it.
Selling may present some difficulties because it could take some time, and this might slow down the divorce process. While waiting for the business to sell, the couple will also have to decide how they will continue to run it and whether one of them will step aside.
Most couples opt for one to buy out the other. This can be done with a direct purchase of shares, and since it is due to divorce, it is usually not taxable. However, this requires the purchaser to have a certain amount of liquidity. Some people may need a settlement note that can be paid over a longer time period. The company might also be able to buy the shares of the spouse who is leaving, but this should be structured in a way that does not incur a large capital gains tax bill. Finally, some couples might agree that they want to continue running the business together despite the divorce.
Attorneys may be able to assist with these and other negotiations around property division in a divorce. Owning a business and other assets, such as valuable collections or real estate in other states or countries, may make the process more complicated, but a couple might still be able to negotiate an agreement out of court. Some couples prefer this since it leaves them more in control of the final divorce agreement, but litigation is an option if they cannot agree.
