Your business may be one of the many assets that might need to be divided in a divorce. However, there are ways to end a marriage without having to sacrifice your Minnesota company. Let’s take a look at some of the most straightforward ways to craft an equitable settlement without undermining your brand.
Sell a minority stake in the company
It may be possible to raise capital to fund a buyout by selling a minority stake in your company. Ideally, the buyer will pay cash for the right to own a small portion of the firm. If you can’t find a buyer, it may be possible to obtain a bank loan to fund a lump sum payout to your former spouse.
Payments can be made over time
It isn’t uncommon for business owners to compensate their former spouses through a series of installment payments. For instance, you could agree to pay them 10% of the company’s profits each quarter until they receive a specific dollar amount. Agreeing to an installment plan may make it easier to reach an equitable divorce settlement without the need to go into debt or otherwise restrain your company’s future growth potential.
Give up other assets to retain full control of your firm
Your spouse may agree to waive its claim to your company in exchange for other assets. These assets might include money in a joint bank account, a family home or a stock portfolio. Furthermore, your spouse may allow you to retain your business in exchange for larger alimony payments. Your attorney may be able to help you determine if agreeing to such a compromise is in your long-term financial interest.
