You may be able to anticipate that a divorce is not going to be easy for you or your spouse. However, what you may not expect is how drastically your once loving partner can seem to change overnight. Sometimes divorce brings out the worst in people. When it comes to protecting your business during a divorce, see an attorney and follow these do's and don'ts to prepare for a worst-case scenario while hoping for the best.
Do Consider a Property Settlement Note
If your spouse has been a part of the business with you, you may arrange to make payments to your spouse over time for their part in the company. That can allow you to keep your business and make payments from the business's cash flow each month. You may be able to avoid having to sell your business altogether with this path.
Don't Involve Your Spouse in Your Business
Don't invite your spouse to be a part of your company if they aren't already. You should not offer to put your spouse to work in your business. You may owe your spouse a greater portion of your business in a divorce if they are involved in the goings-on of the company. If your spouse is already involved, you may consider letting them go or reducing their role. The more involved your spouse is, the more entitled they may be to a piece of your company.
Do Pay Yourself a Competitive Salary
Although it may be too late to do this once you are on the road to divorce, you should pay yourself a competitive salary when you own a business. If you reinvest too much of your money back into the company, your spouse may claim that they are owed to a stake in your company because they didn't reap the rewards of it during the marriage.
Don't Mix Up Your Personal and Professional Finances
Since you put so much of yourself into your business, it is only natural for an entrepreneur to feel a close connection between their personal and professional finances. However, make a commitment to always keeping them separate. Don't think about taking money out of your personal savings account to remodel the office. Always keep a clear divide between the two.
Finally, see a divorce lawyer to make sure that your personal and professional best interests are protected throughout the separation and divorce proceedings. A divorce can wreak havoc on a business and even cause its demise. Don't let that happen to you. Take the steps necessary to ensure the long-term success of your company well beyond the "I Do's" have turned into "I Don'ts".
Share9 March 2017
When my husband filed for divorce a few years ago, I knew that I didn't want to endure a legal battle on my own. I interviewed several different attorneys until I found one that I really liked, and then I really gave my case my all. I had long talks with my lawyer about everything from financial problems to the way that we organized our schedule, and she was able to create a rock-solid case from my statements. This website is all about the importance of communicating effectively with your attorney by making the right decisions. Check out these posts about lawyers so that you are better prepared for your next case.