Ending a marriage may not seem very complicated to some spouses if they opt for a quick divorce. Spouses have to settle their family matters while having a divorce in Mississauga, too. One of those issues is the division of their assets. Some assets are convenient to share if they have a middle ground. Nonetheless, some assets are difficult to share when spouses end their marriage in Mississauga. Competent Mississauga family lawyers can help spouses resolve this problem. Plus, sharing assets while spouses are in partnership in a business is a hard nut to crack. What should spouses do to share assets of a business when they are business partners? Here are options for spouses to manage property division when they are business partners and want to end their marriage:
- Joint Ownership: It is better for spouses to remain amicable while having a divorce, especially if they have children. An uncontested divorce is an easy way of terminating the marriage. Plus, joint ownership is suitable with a quick divorce. One type of business co-ownership is that one spouse doesn’t take interest in day-to-day operations. Yet, the spouse hold shares. In such a scenario, the spouses who agree to run a business should pay a profit percentage. The spouse should pay the profit to the other spouse as per the partner’s share. Nonetheless, joint ownership in the latter situation may not benefit spouses if the business fails to generate profit.
- Purchase Other Spouse’s Share: Another reasonable option for spouses ending their marriage with a business partnership is to purchase the other spouses’ share. A buy-out is a desirable option if one spouse wants to keep the business and the other wants to leave it. A spouse who wants to keep the business must pay the amount equal to the other spouse’s share. For instance, you may understand a buy-out with the following example:
One spouse owns 75% share and wants to keep the business, whereas the other owns 25% share. The business of the spouses is worth $500,000. The spouse who wants to keep the business may pay the other spouse $125,000 to keep the business.
Usually, spouses choose for a buy-out pay the entire amount. Nevertheless, they may agree on paying the other spouses in installments with collaboration. Consider the above example again to understand how one spouse may pay the other spouse in two installments. The spouse should pay $62,500 in two installments to keep the business to the other spouse.
- Sell the Business: Usually, Mississauga family lawyers can help spouses make legal settlements with property division. However, lawyers are not experts at accounting when the situation of divorce is complex, like spouses in a business partnership. If a buy-out doesn’t seem right to spouses to end their marriage, they may sell their business. They may sell their company and split the proceeds. Typically, it is the most suitable option for spouses to end their marriage if they are joint business partners. Additionally, a business without enough profit may hold difficulties for spouses to sell out.
Who Can Help Spouses with a Divorce If They Have a Partnership in Business?
We have already mentioned the options that spouses in business partnerships have to end their marriage. Additionally, the property division becomes a complex task if the business/company is in debt. Or when there are more business owners or third-party agreements that the business deals with. A divorce lawyer in Mississauga can help spouses in the preceding case as long as the attorney is highly reliable. Plus, the attorney possesses sound financial knowledge of property division issues in Mississauga.
Spouses can end their marriage through a quick divorce without much difficulty and faster. Nonetheless, property division becomes a hard nut to crack for spouses to end their marriage when they are business partners. Three good options for those spouses to end their marriage in Mississauga are as follows:
- They agree on co-ownership.
- One spouse purchases the property of the other spouse with a buy-out.
- Spouses agree on selling their business.
These options may help spouses in business partnerships end their marriage in Mississauga with a divorce. Nonetheless, spouses may suffer problems with property division in case of their business is in debt or have another partner. Consulting with knowledgeable and experienced Mississauga family lawyers can aid spouses in the preceding situation.
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