So, you’re facing a divorce – something you never thought you’d have to deal with. It seems you’re spending more time in meetings with lawyers than you are sleeping these days. It’s all so complicated.\u00a0 Trying to equally divide out community property and accumulated marital investments is incredibly difficult\u00a0– especially when there is a privately-owned business involved comprising a large portion of the value of the community property.<\/p>\n
What do you do when one spouse wants to remain at the helm of the business and the other wants to be cashed out of their share?\u00a0 Sometimes there just isn\u2019t enough liquid capital for an off-the-cuff buyout.\u00a0 In that case, what\u2019s the solution?<\/p>\n
It can seem to be an unsolvable problem when the divorcing spouses cannot come to an equitable decision.\u00a0 Selling half of the business usually is not an option, but at the same time, you can\u2019t take blood from a stone.\u00a0 You just don\u2019t have the cash for a buyout that would allow a clean parting of the ways.<\/p>\n
Is there a compromise that can work for both parties?<\/p>\n
The answer, thankfully, is yes.<\/p>\n
An Employee Stock Ownership Plan might be the perfect solution.\u00a0 There are definite benefits to considering an ESOP in spousal asset division.\u00a0 From a business perspective, choosing this option can provide significant bonuses for both parties.\u00a0 It is a flexible answer to a challenging problem.<\/p>\n