What happens to a family business sale if one of my children was never actually involved in running it?

There's no legal requirement that a child be involved in the business before buying or inheriting it, but practical and family issues tend to surface here that a purchase agreement alone doesn't solve. On the legal side, the sale itself works the same way regardless of the buying child's prior involvement — valuation, purchase agreement, financing or vendor take-back terms, and disclosure all still apply.

Where it gets more complicated is if other children who were involved in running the business feel that involvement should count for something, or if the uninvolved child buying the business needs a longer transition period to actually learn how to run it, which should be reflected in any transition or consulting arrangement with the outgoing owner. If you're choosing a successor who wasn't previously active in the business, put real thought into — and document — both the purchase terms and a realistic transition plan, rather than assuming ownership alone will be enough to make the handover work.