Mediate Michigan

(Part 5 is the final installment in an ongoing series about keeping your business assets safe in the event of divorce. Part 1 can be found here. Part 2 can be found here. Part 3 can be found here. Part 4 can be found here.)

If, for whatever reason, your husband is entitled to an ownership interest in your business and you don’t want to be partners after the divorce, you have a number of ways to pay him off, including:

A – Using your share of other marital assets including cash, stocks, real estate, retirement funds, etc.

B – Property Settlement Note – this is a long-term payout with interest of the amount you owe your ex-spouse for the value of his share of your business.

C – Using an ESOP (Employee Stock Ownership Plan) to raise funds by selling a portion of your business to your employees.

An ESOP is a tax-advantaged, qualified employee retirement plan similar to a stock bonus plan except that it is designed to provide your employees with an ownership interest in your business.

via Jeffrey A. Landers: How To Divorce-Proof Your Business: The ESOP Or Property Settlement.