Dividing the Family Business
Determine the company value. Review company agreement (buy-sell) to determine if the procedure for determining the company value in the event of divorce is addressed. You may need to hire a business valuation expert.
Ensure proper documents are drafted to formally transfer ownership of the business to the spouse who will be awarded the business (if it will not be wound-down). This is also important for liability purposes post-divorce.
If appropriate, consider a non-compete agreement for the spouse whose interest is being bought out of the business.
