Going through a divorce can be one of the toughest and most draining periods of your life. How your relationship has ended will determine how the divorce will unfold and how your assets will be divided. For a business owner, divorce can be a much more complex experience, as having to potentially divide your business assets can be a difficult process.
Divorce has been the downfall of many businesses, but it’s important to remember that any decision that is made during the settlement agreement regarding your business will not only affect yourself and your family, but also your employees and their families too. Here are the best ways to protect your business in the event of a divorce.
Simplify your process:
During the event of a divorce, you need to put your business before your own needs. If your spouse is entitled to some of the business, then you need to rise above your own emotions and think about the long term effect this could have on your business.
You will have additional eyes to look into your business, checking the net worth, functionality and profit that it is making. This impartial survey will help to gain clarity on how the business should be divided and who is entitled to company shares, a job and so on.
When was the business created?
When the business was established will help to determine whether your spouse is entitled to a place at the company. If you started the company before meeting your spouse and they have played no integral role to the success of the business, then any long-term inclusion in the future of the business can often be ruled out.
If your spouse has played an integral role in the success of your business and has been involved from the very beginning, then you need to think of how the company would operate without them. It’s important again, to put your feelings aside and to make sure that you make a decision that will not hinder the success of your business.
One of the best ways to resolve a divorce settlement if your spouse plays an integral part within the business, is to agree to co-ownership. Whether you find a way to work together or on alternate days is up to you. Remember, your business is your priority, so your feelings will have to be pushed to one side.
Failing that, it’s also a good idea to look into making your spouse a silent partner, who would maintain the assets of a business owner, without having any involvement in the company.
It’s always a good idea to look at bringing a dispute resolution lawyers in to help to maintain a level of professionalism and clarity during this turbulent time. As a business owner, the lives of so many around you can be affected, so it’s important to make a decision that will benefit everyone.