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Should you sell your share of a co-owned business when divorcing?

On Behalf of | Jun 26, 2023 | blog, Divorce |

When going through a divorce in Texas, one of the most challenging aspects can be deciding how to divide shared assets. If you and your spouse co-own a business, the question of whether to sell your stake to your ex-spouse can be particularly complex.

Here are some aspects to consider as you work to answer this question.

Evaluate your role in the business

One of the first things to consider is your role in the business and whether you want continued involvement in it after the divorce. If you are actively involved in the business and enjoy the work, you might want to keep your stake.

However, if your involvement is more passive or if the business is a source of stress or conflict, selling your stake could be a wise decision.

Consider your financial circumstances

Decide whether you can afford to buy out your ex-spouse’s stake if you want to keep full control of the business. Consider the current value of the business, your personal assets and whether you would need to take out a loan to buy out your spouse. If your financial situation is tight, it might be more prudent to sell your stake.

Think about your future plans

If you are planning to start a new venture or want to change your career, it might make sense to sell your stake. But if the business is a significant part of your future plans, it might be worthwhile to hang onto your share.

Maintain a civil relationship

If you can continue in a civil, cooperative relationship with your ex-spouse, you might be able to continue running the business together. But if the divorce has caused significant conflict, selling your stake may be the best option for both the business and your personal peace of mind.

Whether or not you sell your business stake to your ex in a Texas divorce, your ultimate goal should be to start this new chapter in your life on solid footing.

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