Regarding COVID-19:

Collins, Buckley, Sauntry & Haugh remains open for business during this Stay at Home period as our work has been deemed essential by Governor Walz. To ensure we can serve our clients and that our staff is safe and healthy we are doing our work remotely. We continue to work on current and new client matters. Minnesota Courts are determining which cases will be heard based on their priority level. If you have an active case and an upcoming hearing date, we will notify you regarding any additional impact the circumstances surrounding COVID-19 may have on your case. Thank you for your continued patience and cooperation during this time.

Who will get the family business in your divorce?

| May 18, 2021 | Divorce

The family business you and your spouse started in the early years of your marriage has expanded and become more profitable over time.

Now that you are facing divorce, your company will be the focal point of the property division process. Here are three options for determining what will happen to your family business.

1. Buy out your spouse

If your spouse is agreeable, you can perform a buyout. You will first have to engage the services of an appraiser to establish a value for the business so you can arrive at an appropriate selling price. This option is typically conducted by transferring a lump sum for the buyout. If funds are not readily available, you can consider offering like assets in exchange for your spouse’s interest in the business.

2. Sell your business

The option that may be the easiest is to sell the business outright. Once again, you will need a valuation so as to establish a selling price. Once sold, the two of you can split the proceeds and move on.

3. Continue as co-owners

If you expect an amicable divorce, you and your soon-to-be-ex might consider continuing as co-owners. No expensive valuation is necessary with this option. Even if the divorce is less than friendly, one of you could become an absentee owner and you would both keep your respective interest in the business.

Careful consideration

There are drawbacks to each option, so careful consideration is in order. For example, the economic climate may contribute to your thinking or your spouse may have a surprisingly strong opinion regarding ownership. Whatever path you take will likely be a bit bumpy, but you can rely on professional guidance as you work toward deciding the fate of the family landscaping business.