Going through a divorce is usually difficult. Going through a divorce when your spouse is also your business partner is usually even more difficult. Any time assets are shared by a couple, they will have to be considered and probably divided if the couple decides to dissolve their marriage. This complicates the process and it particularly complicates it when those assets constitute their livelihoods. Fortunately, there are some steps you can take that may prevent a divorce from permanently damaging your business.
Prenuptial Agreement
This is a difficult thing for most couples to consider as they go about the beginning of their marriage. As a result, many couples are forced to deal with additional issues that are stressful and time consuming as they work to finalize their divorce.
Even if you decide that you do not want a prenuptial agreement, you can draft a separate document outlining the separation of assets relating to your business. This prevents you from having to potentially dispute asset separation down the line. When considering documents like these, your foremost concern should be the survival of the business. If everything else is formed around that, one of the largest issues is already taken care of and it may serve to remove or focus additional concerns.
Work with your partner
If a divorce is not amiable, this may be a difficult task, but working together and focusing on shared interests will save both parties much time and expense. The longer the divorce proceedings go on, the more they are likely to cost. Working with your partner to quickly reach a conclusion will make things easier for everyone.
You will also have to hire a business-valuation firm. These can be costly and some people will want to insist that the firm of their choosing is given the task, but deciding on a neutral third-party firm will provide both parties with peace of mind and will save considerable expense.
Avoid splitting the business
Businesses with two equal partners who are unable to work well together toward a common goal of business development usually doom their business to failure. Instead of splitting the business down the middle, try to give control of the business to one party or the other. The party who does not get control of the business can be compensated with other assets of equal value.
If you do end up in the situation wherein you need to divorce your business partner, you will want to ensure that you have a knowledgeable, experienced legal professional who is working with your best interest in mind. Their expertise and support will greatly improve the quality of the outcome.
