When going through a divorce in Ohio, it’s a good idea to think about how you’ll protect your interest in the family business. Aside from the obvious emotional aspects of your divorce, it can help you to remember that divorce is essentially a business transaction. Staying grounded in the business aspect can benefit you afterward.
Consider the long-term implications
While pushing for a larger share of the business in the short term may be tempting, it’s important to consider the long-term implications. Think about whether you can continue running the business and how the various outcomes will affect your future income.
Review any existing agreements
Review any agreements and documents related to the business, such as a partnership or shareholders agreement. Ensure that they are in line with your interests. This is particularly important if you are a minority shareholder in the business.
Be open with your spouse about the business and its financials. This can help prevent any misunderstandings or disputes down the line.
Anticipate the possibility of a buyout
One spouse may need to buy out the other’s share of the business. This can be a complex process, and you should clearly understand the terms and conditions of the buyout.
Keep in mind the tax implications
Divorce can have significant tax implications, particularly when it comes to the division of assets. A financial professional may be able to help you understand tax intricacies and help you determine the business’s fair market value.
Be prepared to negotiate
Negotiating the best conditions is permitted. However, be willing to compromise and make concessions to reach a fair settlement.
The business side of divorce
Ohio laws are very clear regarding the equitable division of assets in a divorce. A financial professional may be able to assist you in sorting out any of the difficult financial issues, such as the possible division of the family business.