A divorce does not always mean you must sell your business or share control with your spouse. In Virginia, the court decides which parts of the business belong to the marriage. The court then looks at what that share is worth and how to divide its value fairly. In this case, fair does not always mean equal.
You may want to keep the company, yet worry about paying your spouse and protecting daily cash flow. You might also have concerns about control after the divorce. An asset offset or payment plan could offer a path to sole ownership.
Use other assets to offset the business value
Virginia courts divide marital property in a way they find fair, which is not always a 50/50 split. You could keep the business while your spouse receives a larger share of other marital assets, such as home equity. This type of offset may help you avoid selling the company or sharing ownership after the divorce.
Before using an offset, you need a fair value for the marital share of the business. An appraiser could review its income, debts and assets. You can then compare that value with other marital property to see whether an offset would place too much strain on either spouse.
Consider payments over time
You may lack enough cash or property to fund the full buyout at once. Virginia law allows a court to grant a money award in one payment or in fixed payments over time. You and your spouse could also set payment terms in a written settlement.
A payment plan might preserve funds for wages, bills and other business needs. You should consider whether the amount and due dates fit the company’s cash flow. The agreement may also address interest or security if the facts call for it.
Preparing for continued ownership
Keeping the business may remain possible even if you cannot fund an immediate buyout. Understanding its value, preparing a workable payment plan and getting guidance on the process could help you protect the company and plan your next steps.