Running a business is a difficult task that requires you to focus on the difficult decisions that you have to make. You don't need anything standing in your way so finding out that you will have to divide your time between running the business and working through a divorce is not easy.
You have to make sure that you are looking at the whole picture. What you decide in the divorce can also impact the business and vise versa. Here are some important considerations to get you started once you realize your marriage is ending:
Do you have a prenuptial agreement?
A prenuptial agreement can spell out what is going to happen with the business. If you don't have one, you will likely have to work with your ex to determine what is going to occur now. There are a few options that most people have for this.
- They can keep the business and both adults continue to manage it.
- They can sell the business and divide the profit.
- One person can buy the other one out.
What is your goal for the business?
Your goal for the company might have an impact on what you are going to do in this situation. If you aren't too tied to it and were only trying to earn an income, selling it might be the best option. If you have invested a lot of time and money and think of the business as your baby, you might not want to part with it.
How will you handle the valuation?
In almost every case, the business needs to go through valuation if it will be sold or bought out. You have the option of using the same firm to handle this, which can save you money and ensure consistency between the numbers. The alternative is for each spouse to hire their own firm, which is a more costly choice.
It is best to discuss the specifics of each option with your attorney before you decide how to move forward. You may find that you have some choices that you didn't think of before. You should consider how every aspect of the divorce might affect your personal life now and into the future. The same is true regarding your company and professional path.