Who gets the company in a divorce—creative solutions

On Behalf of | Jan 24, 2025 | High-asset Divorce |

Dividing a business in a divorce presents unique challenges, especially in high-asset cases. Both parties often have a vested interest in the company, making it a complex asset to handle. Ohio law provides a framework for equitable distribution, but creative solutions can make the process smoother and more equitable.

Understanding Ohio’s equitable distribution law

Ohio follows the principle of equitable distribution in divorce cases. This means the court divides marital property fairly, but not necessarily equally. When a business is involved, the court considers factors such as the company’s value, each spouse’s contributions, and future earning potential. To avoid lengthy court proceedings, couples can explore alternative methods to address business division.

Buyouts and co-ownership agreements

One common solution is a buyout. One spouse can buy the other’s share of the business, ensuring sole ownership while compensating the other party. Co-ownership agreements are another option for couples willing to continue running the business together after the divorce. While this approach requires strong communication, it can be effective for maintaining the company’s stability.

Selling the business

Selling the business and splitting the proceeds is another option. This method works well when neither party wishes to retain ownership or when the business cannot operate effectively under joint control. Couples should agree on a valuation method and timeline to ensure a smooth sale.

Involving professional appraisers and mediators

Professional appraisers can determine the fair market value of the business, which helps in reaching an equitable division. Mediation offers a less adversarial approach to resolving disputes. A neutral mediator can guide discussions and help both parties agree on terms that work for everyone involved.

Protecting financial stability and future growth

Finding a fair resolution for dividing a business ensures financial stability and preserves future opportunities for both parties. A fair and practical resolution to business division secures financial stability and sets the foundation for new opportunities.