My guidance is: Don't mix business and pleasure.

You mention their house.

You mention a business, but is that the C Corp, which is its own entity, and is that Shares, since they are not owners but are shareholders? Or, is that really the Business, not the entity? And then you have to know if the entity continues afterward or is disbanded. That's because, in many C Corp-Spousal Divorce situations, there is some consideration or agreement for who has the right or responsibility to continue being in that business, for who is going to be restricted on being in that same business, etc.

So, you need to know community property and common law property issues. How are real and personal property items titled or deeded?

Your info for purchase isn't good enough, considering it is house and "business." for these reasons.

And valuations matter. The house might have a FMV with a mortgage. The business entity might be free and clear of debt, have huge assets, be leveraged to the hilt, need a business evaluator.

For an example of confusing all of the elements, your item 3 is problematic. The business either is or is not buying out that shareholder. You cannot deduct as business expense the price of one spouse buying out the other, which is often a mistake made because people consider, "My only source of that size of money is the business, so of course, when the business pays, that makes it business."

Nope.

And services to the corporation is an Employment issue. Not a Buyout issue or a divorce issue.

Your question 2 could be read as follows: My two people who are divorcing are 50/50 shareholders now. Once they divorce, they still need to cooperate or will butt heads over business issues as 50/50 shareholders. So, only they know if it is beneficial, because they are lots of benefits and downfalls going forward. It isn't clear which benefit you are considering. I bet, if you draw a line for two columns, you are going to have lots of benefits, and lots of cautionary notations.

And going forward, think of what happens when one or each of them remarries. I like Dave Ramsey's "3 Ds":

Death

Divorce

Drugs

Nothing like leaving the two shareholders to also continue to be the employees. Then, one remarries, the new replacement spouse has a drug or gambling habit, there go the reserves, then they divorce and that leaving replacement spouse claims a share of the business...

Ah, life.