How a Divorce Can Affect Your Business
If you are married and own your own business, are you thinking about your future? Sure, you may believe that you and your spouse will be together forever, but realistically, that may not be the case. People change, things happen. In a few years, you may no longer be living happily ever after. You may be considering divorce.
That’s why it’s a good idea to have some sort of protection. A prenuptial agreement can protect assets before you get married. If you have already tied the knot, a postnuptial agreement could still protect your business in the event of a divorce.
Divorce can impact your business in several key ways. If you don’t have any protections in place, you could end up with your ex-spouse as a partner—or worse yet, you could end up with no business at all. Consider these possible implications of a divorce on your business.
A divorce can disrupt your business’ day-to-day operations. Divorce can be complicated and messy. It can pull you away from your business many times throughout the day as you deal with appraisals and calls from your lawyer. You may also need to locate important paperwork and this can be time-consuming. You’ll also need to schedule court appearances, which will likely take place during your business’ normal work hours.
Impact on Employees
Your divorce will impact employees and partners in some way. They may get pulled into interviews and appraisals. They may feel more tense while at work, especially if your spouse was a huge part of the business in the past. If your spouse performed numerous duties for your company, how will those roles be filled now?
More importantly, there is also the financial side to consider. How will your business be split in the divorce? Will you give your ex-spouse stocks or other assets? Will your ex-spouse become a partner? There are many scenarios to consider and they will all affect your business to some degree.
Dissolution of the Business
While this is not the usual solution, it is a possibility if you and your ex-spouse are equal partners or if he or she is entitled to a large payout that you cannot provide unless you sell the business. Negative events such as bad press, poor communication with clients and diminished reputation may also force you to shut down business operations. If your company is experiencing a loss of revenue or you are facing legal issues, it may also make sense to shut down the business rather than pour more money into a business that may or may not survive.
Seek Legal Help
A divorce can affect your life in many ways. It can impact assets, child custody, your business and more. Make sure you get the help you need to deal with all these aspects.
Fort Lauderdale divorce attorney Edward J. Jennings, P.A. can help resolve your issues and guide you through the process of splitting your business. Schedule a consultation today. Call 954-764-4330 or fill out the online form.