When a couple gets divorced in New York, it may have consequences for the company that they run together. It could also have consequences for a company that a spouse ran on his or her own. However, this doesn’t mean that the business has to be sold or dissolved. In some cases, a couple may decide that they can continue to work together without issue. They may also decide to structure their roles so that they don’t have to interact with each other.
One spouse may choose to buy out the other in an effort to take total control of the company. The payment may either be made in a single lump sum or in installments made over time. If it is not feasible to pay the other spouse for his or her share of the company, it may need to be sold or dissolved even if that is not the preferred outcome.
If the company is to be sold, both parties should work to determine when the sale should take place. They should also work to determine an adequate sale price and structure. This can help to ensure that each person is working together as opposed to each person fielding offers that aren’t acceptable. Couples should discuss ahead of time whether a non-compete agreement will be needed.
Business owners who are about to get a divorce may want to meet with an attorney to discuss how it could impact their companies. It may also be a good idea to discuss how to account for a company prior to getting married. For instance, it may be possible to label a business as separate property in a prenuptial agreement. This may make it possible to ensure that the organization is not impacted by the end of a relationship.