How to manage divorce when there is a business
When it comes to divorce and business, you might want to utilize a strategy to keep them from mixing. The presence of emotions can complicate your ability to make sound business decisions to protect yourself and company from the fallout of your separation.
Your marriage may be over, but your business if your business is still intact or you see yourself working with your soon-to-be ex-spouse for the foreseeable future, you might want to take these suggestions into consideration about business and divorce.
Establish roles and obligations
Owning and managing a business are separate things. Both roles require you and your spouse to take on multiple obligations and duties. Identify who owns and manages the company. Delegate roles and obligations that benefit your situation, such as focusing solely on ownership or management/administration duties. Identifying business roles can make it easier to determine negotiation leverage.
Separate work responsibilities
If you work with your partner, now is the time to inform HR of your situation. If possible, as for a work schedule that keeps you and your partner from working with each other. If interacting with your soon-to-be ex-spouse is unavoidable, keep all behavior and communication professional.
Negotiate, co-own or buy out
Divorce requires you and your partner to split assets, especially those involving a business. If you and your partner are amicable and willing to cooperate, you can hold onto your business assets as co-owners. Depending on their personal financial situation and business interests, they may decide to offer you a portion or all of their business assets in lieu of cash or other desirable assets in a buy-out offer.
To determine the value of what is at stake, get a business valuation. Once you know the value of your company, you and your spouse can negotiate terms. You are under no obligation to accept what they offer.