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Should You Co-Own Your Family Business with Your Former Spouse?Dividing a family business in a divorce is difficult if each spouse has equal ownership of the business. To include the business in the division of property, the spouses must:

  • Agree on who will own the business after the divorce;
  • Thoroughly assess the value of the business; and
  • Find other properties to award in exchange for the business.

Spouses can avoid these complications by choosing to remain co-owners of the business after their divorce. This is not a viable option for every divorce but can be mutually beneficial when spouses agree to it.

Valuation Process

Spouses immediately benefit during the divorce negotiations when they both keep ownership of the family business. They do not need to go through the long and complicated valuation process because they are not dividing the business. Neither spouse will have to give up valuable marital properties in exchange for total ownership of the business. The divorce agreement can presume that each spouse will receive equal value from the business as long as they are co-owners. Skipping the business valuation process saves time and money.

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