Divorcing Your Business Partner: Tips To Ease The Transition
For many couples, getting a divorce means that once the ink on the divorce decree is dry, they don’t have to deal with each other except for possibly when dropping off kids and picking them up. For couples who share a business, however, divorce is a little more complicated. Louisiana couples who share a business might be interested in learning some tips about dealing with the business in the event of a divorce.
One of the best things spouses who share a business can do if they are divorcing is to hire an independent appraiser to determine the value of the company. By hiring an independent appraiser, conflicts at the time of the divorce and after regarding the value of the company can usually be avoided.
Another important point to remember is that you must compromise about the business. If at all possible, the company should be one of the points covered in a premarital agreement. Points to cover include stating roles of each spouse, establishing separate property and creating a succession plan.
Being transparent during the divorce is another key point to keeping the peace while dealing with the business during a divorce. You don’t want to jeopardize the business by being less than honest about the business’ assets.
Finally, work with your spouse to determine the roles you will each have with the company if you both remain part of the company. These roles should be clearly defined to avoid conflict in the future.
The U.S. Census Bureau reports that spouses who are also business partners have approximately 3.7 million businesses in the U.S. When these business partners decide to end their personal union, the business might suffer. It is important to properly protect yourself if you are one of those business owners. Knowing local laws and determining how to best protect yourself during the divorce are vital to ensure you have a good financial foundation when the ink on the divorce decree is dry.
Source: Fortune.com, “Double trouble: When spouses who share a business call it quits” Brandon Southward, Apr. 09, 2014