As a business owner ending a marriage, you have a lot of questions about how your legal situation affects your company. For instance, does your current spouse have the right to sell your enterprise before you finish divorcing?
Chron breaks down rights and rules regarding the matter. Learn which steps to take to protect the hard work you invested in your company.
Rules of property distribution
Because equitable distribution rules apply in Minnesota, expect the court to divide your marital property fairly, which does not always mean equally. When determining how to divide assets like a business, a judge considers your income and how long you remained married.
Right of ownership
You may want to sell the business of your volition before finalizing your divorce. This becomes an option only if your soon-to-be-ex-spouse does not have company ownership rights. Before deciding, remember that if you sell the business, you must compensate your current partner for his or her company share. Do you and your spouse share ownership? If so, you cannot sell before seeing the divorce through.
Sometimes, a divorcing spouse files a restraining order to prevent the other person from selling the business before finalizing the divorce. One partner could argue that selling the company puts her or his business share in danger, which may convince the court to approve the restraining order.
Perhaps your soon-to-be-former-partner has a right to a percentage of your operation. He or she could have a professional appraise your company’s current value, which involves studying business income and assets and the market.
By learning how to handle business matters in divorce, you better understand what to expect. Getting the facts helps you create a divorce strategy that protects your rights and your business.