Maryland entrepreneurs may dedicate years of their lives to establishing a successful business with a great deal of potential for the future. In many cases, the whole family may be part of the journey to profitability and success for a privately held corporation. However, when you decide to divorce as a business owner, you may worry about how the end of your marriage may affect the future of your company. Some venture capitalists are known to require divorce planning provisions before investing in a promising startup, and you may have heard of businesses that were sold off as part of a divorce settlement.
Buying out your spouse
You can finalize your divorce and move forward with a successful company. In many cases, one spouse is the engine behind the business, while the other played a supporting role. Here, your spouse may want to leave the company, and the divorce settlement can be an opportunity to conclude a buyout. A greater share of other marital assets may be exchanged for their stake in the business during the asset division process. Here, it may also be important to conclude legal agreements that shield your spouse from future business litigation while ensuring all intellectual property is turned over to the company.
Continuing to work together
In other cases, you may want to try to move forward as business partners, including in cases where there is limited cash flow to complete a buyout. However, you might want to determine the specific percentage that each spouse owns in the company as part of the divorce settlement. You might also want to conclude agreements that allow either spouse to end the business partnership and secure a purchase of their portion of the company within a fixed period of time, such as a buy-sell agreement or a put/call option.
As a business owner, you may want to make sure that the future promise of your company is not held back due to personal life changes. Understanding the options available for a successful property division settlement may help you to move forward and finalize your divorce.