Divorce is a major life change. It affects all areas of your life. And if you own a business on your own or especially with your soon to be ex, divorce will impact your business as well. Here are some of the ways that divorce can specifically affect your business.
Divorce is disruptive. This is true especially of your daily life at home, but it also will seep into your business dealings. For one, due to the nature of divorce, you may be more distracted or emotionally drained at work. But if your spouse had any part in your business, this will certainly complicate things. They may have stakes or stocks in the company. This could mean that they hold influence over your business and its day-to-day operations.
Another hiccup regarding your business is likely to come in the form of determining equitable distribution. If you live in a community property state, divisions of assets are 50/50. If you live in any of the other states, that means that assets are evaluated and divided by the court, including your business.
And obviously, a huge way divorce can affect your business revolves around your business’s finances. Marital property encompasses all income and assets. This includes your business and what comes out of it. Even when a divorce is uncontested, unless there is a prenup, your spouse has a claim to anything in your name.
So, there is a lot at stake. Is there any way to maintain some control over your business while going through a divorce? Yes, there is, and that is through mediation. Through the mediation process, you and your ex can discuss what you both think is a fair distribution of assets until you both can agree on something that is beneficial to both parties. This will prevent both spouses from coming away soured through the divorce court process. Your mediator will do their best to negotiate terms that are pleasing to both spouses with the hopes of separating your lives as painlessly as possible. And hopefully leaving your business as stable and unaffected as possible.
If you want to have the most control and say in the division of assets during your divorce, reach out to Solutions & Resolutions today!