Some Texas couples enter into a partnership twice, a personal one at the altar and a professional one with a business contract. But should they decide to divorce, some couples find they have to break up their business along with their marriage. Some couples sell off their business and split the proceeds, but in other cases, one spouse may try to buy out his or her spouse. If you are in this situation, consider the following tips to help make your buyout as pleasant as possible.
According to an article on the American Express website, you should strike a positive tone as you talk with your partner about a business ownership buyout. Divorces can be unpleasant and you might have some issues with your spouse, but a confrontational attitude can make things worse and cause the buyout to fail, or at least, you might have to pay more for your wife or husband’s ownership interest.
To buy out your spouse, you must first valuate the business. Seek out an independent valuator to come up with the business evaluation so you can come up with a fair price to buy out your spouse. Your valuator firm can also estimate profits the business may generate in the forthcoming years, which can help you determine whether holding on to the business is a good idea.
Here are some other tips for dealing with your spouse:
- Do not assign blame for things that went wrong in the business
- Stay away from discussing past business disagreements
- Do not get caught up in arguing over business valuation
Be willing to seek compromises if it ultimately helps you to acquire the business. Sometimes spouses will not agree on the valuation of the company. The spouse to be bought out may claim a higher valuation than the spouse seeking to buy out. In this case, it may be better to accept the higher number for the sake of harmony.
Divorcing couples can have many points of contention when separating a business partnership. For this reason, do not read this article as legal counsel for your situation. It is only intended to educate you about property division in divorces.