Are there ways to preserve a business during a divorce?

| Feb 17, 2021 | Blog, Divorce |

Married couples deal with co-mingled assets frequently. When spouses decide to divorce, many financial issues come up during the settlement talks. Not all financial matters involve investment vehicles or real estate. A Minnesota couple may have concerns about a jointly or individually owned business. How does the asset distribution work during a divorce? An attorney may help during negotiations to explore an agreeable way to divide assets while protecting the business.

Divorce and the impact on a business

Divorce may prove unavoidably time-consuming and potentially stressful. However, a business owner might not be able to take much attention away from the enterprise’s appropriate operation. Clients could depart, leaving a business in shambles. Therefore, concerns over running a business effectively may take precedence during divorce settlement negotiations.

Minnesota ranks as an “equitable distribution state,” so the court considers fairness when dividing assets. If one spouse had nothing to do with starting or running the business, the other spouse might gain more leverage in negotiations. That said, the other spouse might choose to rebuke an unfair offer, so being too rigid in negotiations may prove self-defeating. Ultimately, the business owner likely wants to protect and preserve the business before, during, and after the divorce.

Dealing with negotiations in relation to business enterprises

Bartering might prove workable when dealing with asset distribution. One spouse might gain 100% ownership of a business after offering 100% ownership of residential real estate properties to the other spouse. Other elements might factor into divorce negotiations, such as debt, taxes, retirement savings, and more. Negotiations may prove challenging, which is why a business owner might rely on an attorney to handle the process.

A family law attorney could provide advice to an attorney about realistic expectations during the settlement negotiations. An attorney may work to protect the client and his/her business’ assets while seeking an outcome agreeable to all.