Business and Divorce Attorney in Irvine, California
What happens when the owners of a business divorce?
What happens when the owners of a business divorce?
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When the owners of a business divorce,
there are a variety of scenarios which
can occur. I think the most common is
that the ownership interest of each
spouse would be valued and spouse A
would buy out spouse B’s interest in the
entity and then spouse A would continue
to operate the business. However, there
could be scenarios where spouse A
doesn’t have the financial ability to
buy out the other spouse. Um, when that
occurs, they can make the decision to
sell the business interest entirely. Or
if it’s not a high conflict case, we
have seen scenarios where the divorced
spouses will make the decision to
continue operating the business um
together.
Irvine, CA family law attorney Amanda Beall talks about what happens when the owners of a business divorce. She mentions that when business owners divorce, several scenarios can arise. The most common is that each spouse’s ownership interest is valued, and one spouse buys out the other’s interest, allowing that spouse to continue operating the business.
However, if one spouse lacks the financial ability to buy out the other, they may decide to sell the business entirely. In lower-conflict situations, she has also seen divorced spouses agree to continue operating the business together, finding a cooperative arrangement that works for both parties.
