Couples who own a business together in Clinton Township often try to build up the business as a team. They put a lot of work into the situation, even if one spouse is focusing primarily on running the home and caring for the kids while the other focuses on the business. While this common goal of growing the company is an amazing thing for the couple, they might not be prepared for what happens if the marriage dissolves.
There are three primary options of what you can do with the business, and a fourth that includes deciding to close the business. Deciding which will work for your case can take a lot of thought. It will probably require you to have some serious discussions with your ex.
Option #1: Sell the business
Selling the business requires you to have it valuated so you know what you should receive for it. You must plan to pay off debts of the company unless the buyer is absorbing them. You and your ex need a plan for dividing the profit so discuss this ahead of time.
Option #2: Buy out the business
One spouse my buy out the other one. This is usually the case when one person is more familiar with the company and the other one wants a bit of freedom from trying to run a company. The sale terms should be carefully planned and the agreement must be followed exactly.
Option #3: Run the business together
Choosing to stay in business with your ex requires cooperation and respect from both parties. The first thing you should do is set clear boundaries about duties, roles and pay. Having a plan that spells everything out can help to avoid contentious disagreements later.
You can even include the dispute resolution process in the agreement about what you will do with the business. You should also decide how you will tell the employees, clients and vendors about the changes, and be sure to include who needs to be privy to what information.
Option #4: Close the business
If nothing else works, you might decide that it is best to close the business. You need to come to an agreement about how the proceeds from the liquidation of assets will go if there is anything left after liabilities are cared for.
It is always best to put everything in writing so that there is a clear plan for what will happen after the dissolution of the marriage in Michigan. This takes the guesswork out of it and gives you something to refer to if there are any disagreements.
