New Jersey couples who are ending their marriage and who own a family business may be concerned about how they will protect that business or divide it during a divorce. Having one person buy the other out involves needing to get the business valued, and this can be expensive. Furthermore, neither individual may have access to the cash flow to buy out the other if their assets are largely tied up in the business. Taking out a bank loan or creating a property settlement note might be one solution.
Continuing to run the business as co-owners might be an option if the two are able to manage the emotional difficulties that could result. Couples who choose this approach should create an agreement that allows each of them to buy out the other.