Divorces are one of the most challenging things anyone can ever go through. But, how could this impact your business?
Your whole life changes and many things that were once staples are not anymore. It can be hard to think and function properly. Add a business to that mix, and suddenly things become so much more difficult, as you have to consider all of those complexities too.
Difficult though it may be, protecting your business during a divorce is one of the most important things you can do, as it is a protection of assets that can be compromised during divorce proceedings. Here are some steps you can take to protect your business during this process.
Draw up a financial agreement
One of the most important things you can do is to draw up a financial agreement to determine how you’re going to split the monies earned between two parties, including any investment in your business. If you run your own business as a couple, this is even more important. And a
“prenuptial” agreement, as it is known colloquially, is one way to protect yourself and the business during this trying time. A prenuptial agreement is a legal contract, and as such, it holds so much more weight than any verbal agreement during a divorce.
Any financial splits during a divorce must be “just” and “equitable” according to the law, so just make sure that whatever financial agreement is drawn up, it doesn’t swing too much in one direction or another – this will simplify any legal proceedings.
Make sure your finances are secure
One of the other critical things you need to make sure of before you sign any sort of prenuptial agreement is that any financial accounts are in perfect order. Get yourself an accountant or task yours, if you already have one, with going over everything with a fine-tooth comb. You want to make sure that everything is squared away so that this cannot be used against you during any divorce proceedings. This will secure your assets from compromise by the other party and give you peace of mind as well.
Ensure business continuity
Even if your divorcing partner had no role in the day-to-day operations of your business, it’s very important you ensure the business continues to run smoothly, despite the situation at home. This might mean deputizing parts of the job to other people who work for you, so you can focus on what’s happening at home and prevent your world from totally falling apart. Never be afraid to ask for help.
Secure any business property
Asset forfeiture is one of the most common occurrences during a divorce. This may also entail any property you own, including, but not limited to, any business property. You’ll want to check with your lawyers to make sure the other party has no legal leg to stand on if they try to come after your business assets. They will also be able to offer the best advice to protect yourself.
Avoid court
Sometimes one of the worst things you can do for yourself is to go to court with a divorce. It is far more stress, time, effort, and money for something that is already effectively dead. Unless you think you have a very strong case, avoid going to court. It will drag out an already time-intensive process. If you and your former significant other can agree on a settlement of some sort without taking the matter to court, you would be far better served to do that.
Make sure you have good support around you
There is such a thing as a “simple” divorce. But that doesn’t mean either party is immune from the toll it takes on a person physically and emotionally. It’s really important you build a core
group of supportive, caring, and understanding people around you, so you have people to lean on and don’t go through an arduous process like this alone.
Divorces are really hard on everyone involved. Nobody gets married with the intent of getting divorced. Life just happens sometimes. However, divorces with business assets involved are made all the more complex, and the arbitration and adjudication of those assets usually do no good for either party, which is why a prenuptial agreement is critical.
