When a high-asset divorce occurs in Washington, many complex issues come into play. One of those issues may be the fate of the business or businesses created during the marriage.
In a high-asset divorce, the stakes are high and emotions run hot, so it’s good to be prepared and know what to expect. Here’s what can happen to your company during a high-asset divorce.
Division
If the founding of your business was during your marriage, then it is generally considered marital property and thus subject to division. In a high-asset divorce, this can mean that the business is split between you and your ex-spouse.
Buy out
If your business is a significant asset and your ex-spouse is entitled to a portion of it, you may be required to buy out their share. This can be a significant expense, and gathering the necessary funds may be difficult.
Selling it
In some cases, neither you nor your ex-spouse wants to keep the business, and it may be necessary to sell it. This process can be complicated, especially if the company is not readily marketable.
Dissolution
If your business is a partnership or closely held corporation, it may not be possible to divide or sell it. In this case, the business may need to be dissolved, which can be complex.
Negative consequences
The emotional toll of a high-asset divorce can be significant. It may affect your ability to run your business effectively. Additionally, a lengthy legal battle can be costly and time-consuming, which could harm your business’s financial stability.
Know what to expect
Understanding the potential impact of a high-asset divorce on your business is essential. While the outcome can be uncertain, knowing what to expect can help you prepare and make informed decisions.
