Posted on: 29 November 2022
Divorce is a complicated process that gets even more complex when you run a business together. Even worse, deciding to part ways can create conflicts that lead to the loss of clients, and the venture might not recover. As such, you should know what to do if you or your partner wants to file for divorce as a co-business owner. In this case, start by speaking to a divorce law attorney to understand the implications of the divorce on your business. Here are some tips to simplify the divorce process as a business owner.
Have a Post Marital Agreement
If you got into the marriage without the investment, you might want to create a postnuptial agreement about the ventures you undertake together. In this case, the agreement stipulates the terms and conditions of running the business as a family and what will happen if you part ways. For example, you can agree that the venture will outlive your union and decide how much holding each person gets after separation. You can also agree on how you will share responsibility for the company, whether married or not. More importantly, the lawyer can help you figure out how the business might hurt you financially in case of a divorce.
Act as soon as you realize that your partner wants to part ways. You should know that most people get so tied up in the other parts of the divorce process that they forget the business will also suffer. As such, when you start your consultation with the family lawyer, make sure they know you co-own a business and ask for counsel on how to proceed. This is because the earlier you discuss and settle this, the less your business will suffer. Also, you should know that if you decide to keep your business as a separate entity after the separation, you will have more time to settle into managing it alone.
Assess the Accuracy of the Records
Records are everything when it comes to separation. This is because the court will want to see how the business is doing, how much it is worth, and other crucial financial details. So, ensure you go over the records with your lawyer and don't forget any details when filing the papers or responding to your partner's petition. More importantly, avoid mixing business and personal expenses because it will complicate the money division process.
These are simple, workable tips you can use to deal with businesses you own at the time of a divorce. In this case, a good divorce lawyer will help you get to a settlement that will not ruin your life investment.
For more information about divorce, reach out to a law firm, such as Reisinger Booth & Associates.Share