Q. My wife and I are seeking an amicable divorce now that our last child is in college. She has not worked for the majority of our marriage but has a degree in library science. I am semi-retired and am now just consulting but I make enough that we still live comfortably. My wife intends to get a librarian job in hopes it will cover health insurance for both of us until we are 65.

The biggest asset we own is my minority interest in a family commercial real estate business which pays dividends each year ranging between $350,000 – $500,000. Historically we have maximized retirement, funded private school, and bought a ski house with this money. I realize my interest has value, but I cannot liquidate it, and I can’t give it to her. If we agree on the value, how can I structure this so we each have enough to live comfortably? I also want to put our oldest through medical school, pay for our youngest to do college and grad school and still be comfortable.

A. Your wife will be entitled to alimony from the dividends paid out each year. Given the fluctuating nature of the dividends, a percentage to her might make the most sense. Just recognize the more alimony you pay, the less cash flow you will have each year to buy her out of the business.

If she is on the same page about funding medical school, college and grad school, it would make sense that before either of you get the benefit of the dividend in any given year, your children’s educational needs are met off the top after which the alimony percentage would kick in. Recognize you will be responsible for all of the taxes due on the dividends so you should tax effect the dividend as part of determining what percentage will meet her needs and leave you with at least an equivalent amount.

Then you need to consider how to “buy out” her share of the business. You can try to give her more of your other assets in exchange for keeping the shares in the company. However, do not put yourself in a position of only walking away with an asset you cannot liquidate. The best option is probably for her to get a larger share of the retirement assets (assuming you will receive dividends into retirement) and keep the house. You can sell the ski condo and use that money to get a place to live.

Then figure out what you can afford to pay her each year on top of the alimony until she is bought out of the business.

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