STEP ONE: Consider the future of the business
Whilst you may not be able to make a decision now, you will want to take time to consider the future of your business and the three possible outcomes of your separation:
1. Continue to own the business together
2. Buy out your ex-spouse’s share of the business (Or transfer other assets to them)
3. Sell the business
STEP TWO: The practical steps
1. Get a fair valuation- Source a neutral valuation professional to review the worth of your business, focusing on current revenue.
2. Remove your spouse from the business- If this is possible, it may be more practicable to ease him or her out as soon as possible.
3. Sacrifice other assets- If your aim is to retain 100 percent ownership of the business by forfeiting other assets instead, such as superannuation, the family’s home or vehicles.
4. Raise capital by selling a stake- You could sell a minority stake in your business to employees through an employee stock ownership plan.
STEP THREE: Find the right advice
With a team of qualified professionals to help facilitate the process, you won’t have to wade through your separation and asset division alone.
We recommend considering:
1. An experienced family lawyer
2. Your accountant and;
3. Your financial advisor
When you put your trust in Leach Legal, we will support you and work with you to ensure you are able to think financially, not emotionally.
Elizabeth O’Sullivan is our commercial lawyer and she has been acting for both buyers and sellers of businesses for over 20 years. She works with leading Perth business brokers to facilitate the settlement of business sales and is able to advise on ancillary matters, such as leases and buy/sell agreements.